Informal economy represents 18% of GDP in Brazil

Informal vendors on the street in São Paulo

Heavy taxes and a lot of bureaucracy. Those are the thoughts that came to my mind when I saw the latest FGV  estimate; Brazil’s informal economy is R$578bn, or the equivalent to Argentina’s total GDP.

The good news is that although sizeable, the statistic reveals a more formalized economy than in 2003, when 23% of GDP  was estimated to be informal.

Published by Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She has a PhD in Economic History and advises companies and investment agencies in international business development.She served as Corporate Relations Director and later, on the board of the Brazilian Investment Analysts Association (APIMEC).

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