Brazil%e2%80%99s%20Informal%20Economy

Brazil%e2%80%99s%20Informal%20Economy - Reining in Brazils...

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Reining in Brazil’s Informal Economy 1992 - 2002 The McKinsey Quarterly
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Highlights of Brazil’s Economic Performance (1992-2002) GDP growth prospects are between 3-4% a year. Should be between 7-10% per year. Informal sector is to blame for Brazil’s slow growth rate. If the Brazilian government were to fight informality, GDP would grow by an additional 1.5% per year.
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Brazil’s Informal Sector The informal sector accounts for roughly 40% of the economy’s total output/GDP Roughly 55% of Brazilian workforce is employed in the informal sector. However, productivity of this sector (i.e., output per worker) is only 46% of that of the formal sector.
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>50% of work force employed within each of the following 11 sectors is informal: Construction services Domestic Services Furniture-making Gasoline retailing Restaurants, hotels
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Most new jobs are emerging within the informal sector
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This note was uploaded on 11/10/2011 for the course ECON 4310 taught by Professor Staff during the Fall '08 term at Kennesaw.

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Brazil%e2%80%99s%20Informal%20Economy - Reining in Brazils...

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