Informal economy in Brazil generated R $ 578 billion in 2009, reveals FGV
Source: Extra - RJ - 21/07/2010
The Globe
RIO - The Brazilian informal economy moved R $ 578 billion in 2009, more than the GDP of Argentina, informed on Wednesday the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre / FGV) and the Brazilian Institute of Ethical Competition (ETCO ). With the release of the new Underground Economy Index, for the first time, Brazil became aware of the size of its production of goods and services deliberately not reported to the government.
“The new form of measurement is a natural and necessary evolution of the index and makes it much more accurate, even though, due to the very characteristic of the subject studied, it is obtained in the form of an estimate”, explains Fernando de Holanda Barbosa Filho, a researcher at Ibre / FGV and responsible for the study. For him, obtaining this estimate is an exceptional advance and answers one of the main questions, that is, measuring how much is produced in the Brazilian underground economy and comparing it with other indicators, obtaining a concrete order of magnitude.
The figure released this Wednesday leaves no doubt as to the extent of underground activity in Brazil.
“We are talking about almost R $ 600 billion, which are outside the formal Brazilian economy. To give you an idea of the seriousness of this problem, just remember that Brazil's underground economy surpasses the entire Argentine economy ”, points out André Franco Montoro Filho, ETCO's executive director, for whom the value will draw more public attention to the subject and will open up even more space for the discussion about its consequences for the country.
The study also allows comparisons to be made since 2003, when the series of index estimates began. In the period, the absolute values went from R $ 357 billion to the current R $ 578 billion. As the GDP grew from R $ 1.700 billion to R $ 3.143 billion, a percentage decrease can be seen in the comparison, from 21% to 18,4% in six years.
Informality, in addition to its relationship with organized crime and precarious working conditions, brings direct damage to society, creates an environment of transgression, encourages opportunistic behavior with a drop in the quality of investment and a reduction in the growth potential of the economy Brazilian. In addition, adds FGV, causes a reduction in government resources for education, health and infrastructure programs.
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Informal economy in Brazil generated R $ 578 billion in 2009, reveals FGV
Source: O Globo Online - Rio de Janeiro / RJ - PLANTÃO / ECONOMIA - 21/07/2010
The Globe
RIO - The Brazilian informal economy moved R $ 578 billion in 2009, more than the GDP of Argentina, informed on Wednesday the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre / FGV) and the Brazilian Institute of Ethical Competition (ETCO ). With the release of the new Underground Economy Index, for the first time, Brazil became aware of the size of its production of goods and services deliberately not reported to the government.
“The new form of measurement is a natural and necessary evolution of the index and makes it much more accurate, even though, due to the very characteristic of the subject studied, it is obtained in the form of an estimate”, explains Fernando de Holanda Barbosa Filho, a researcher at Ibre / FGV and responsible for the study. For him, obtaining this estimate is an exceptional advance and answers one of the main questions, that is, measuring how much is produced in the Brazilian underground economy and comparing it with other indicators, obtaining a concrete order of magnitude.
The figure released this Wednesday leaves no doubt as to the extent of underground activity in Brazil.
“We are talking about almost R $ 600 billion, which are outside the formal Brazilian economy. To give you an idea of the seriousness of this problem, just remember that Brazil's underground economy surpasses the entire Argentine economy ”, points out André Franco Montoro Filho, ETCO's executive director, for whom the value will draw more public attention to the subject and will open up even more space for the discussion about its consequences for the country.
The study also allows comparisons to be made since 2003, when the series of index estimates began. In the period, the absolute values went from R $ 357 billion to the current R $ 578 billion. As the GDP grew from R $ 1.700 billion to R $ 3.143 billion, a percentage decrease can be seen in the comparison, from 21% to 18,4% in six years.
Informality, in addition to its relationship with organized crime and precarious working conditions, brings direct damage to society, creates an environment of transgression, encourages opportunistic behavior with a drop in the quality of investment and a reduction in the growth potential of the economy Brazilian. In addition, adds FGV, causes a reduction in government resources for education, health and infrastructure programs.
