Informal economy in Brazil should move more than Israel's GDP


IESEconomic activities that are not reported to the government are expected to generate R $ 830 billion in 2014, more than Israel's GDP (Gross Domestic Product) last year, which was equivalent to about R $ 742 billion.

The Underground Economy Index was released this Tuesday (12th) by the Brazilian Institute of Competition Ethics (ETCO) and by the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV-Ibre).

In addition to the informal market, the indicator calculates everything that moves in the country, but is not officially reported to the government. For example, a factory that produces 100 pairs of shoes and declares only 90 to the government collaborates with 10 pairs for the so-called “underground” economy.

This R $ 830 billion represents 16,2% of the Brazilian GDP, a deceleration of 0,1 percentage point in relation to the proportion of last year (16,3%).

Source: Uol (economy) - 12/11/2014

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