Illegal trade in Argentina has reached approximately US$32 billion annually, equivalent to roughly 5.5% of the country's gross domestic product, according to a new study by CAC-PwC.
The research indicates that this vast informal sector results in an estimated US$8.5 billion in lost tax revenue for the state each year, underscoring the significant fiscal gap created by economic activity outside the formal regulatory framework.
The findings highlight the persistent structural challenges facing Argentina's economy, where a large share of commercial activity operates without official oversight.
For investors and policymakers, the scale of the informal economy represents a critical barrier to expanding the tax base and improving public service funding.
The data suggests that efforts to formalize these sectors are not just regulatory exercises but essential components of fiscal consolidation.
This development adds to the broader narrative of economic restructuring in Argentina, where the government continues to grapple with high inflation, currency volatility, and the need to restore investor confidence.