Informal accounts for 40% of national income


Source: Correio Braziliense, 09/01/2005

The resumption of the Brazilian economy did not change the structured informality in the country, which today reaches between 35% and 40% of the national income, as estimated by the World Bank (Bird) and the federal government. Did employment, tax collection and social security contributions go up in 2004? a sign that informality has lost strength in the labor market. But smuggling, piracy and tax evasion, which also make up the informal economy, are growing steadily, according to businessmen and experts. They consider this to be a worldwide trend, even to face the strong competition with China.

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