Novo Desenrola, a program unveiled by the Brazilian government aimed at renegotiating individual debts, has benefited over 6 million people and families in its first few days, Finance Minister Dario Durigan reported.

Of this total, about 4 million people have had their debts cleared.

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“These are people with small debts of up to BRL 100,” he explained on Tuesday (Jun. 9) during an interview with the news portal UOL.

The program was created with the goal of reducing delinquency and facilitating credit recovery. The initiative primarily benefits low- and middle-income Brazilians, especially those earning up to five minimum wages per month (BRL 8,105) who have overdue bank debts.

To this end, more favorable terms than those available on the market are offered for paying off or paying debts in monthly installments.

Among its main features are discounts of up to 90 percent on the debt amount and reduced interest rates (limited to about 1.99 percent per month). Payment plans can extend up to 48 months.

Interest rates

During the interview, Minister Durigan said the high interest rates charged in Brazil have indeed been detrimental to Brazilians. However, he added, through this program, the government has been helping the people cope with this situation.

“Data from this morning show that more than 6 million people and families have benefited from Novo Desenrola in the program’s first few days,” said the minister, noting that this is a national initiative scheduled to end on August 2.

According to Durigan, “about 4 million people had their credit ratings downgraded due to small debts of up to BRL 100; and 1.1 million people have paid off their debts in a lump sum, with average discounts exceeding 80 percent.”

“These people have cleared their credit records and are once again eligible to borrow,” he pointed out.

The finance minister denied that interest rates in Brazil are high because the government spends too much.

“They stem from imbalances caused mostly by the war [between the US and Israel against Iran]. Therefore, as long as this scenario persists, we are adopting [price] subsidy measures, such as the one for gas,” he added, reaffirming that, from a fiscal standpoint, nothing has changed.

The new rules for the Brazil Sovereign Plan (Plano Brasil Soberano) took effect this Monday (Jun. 8). As a result, more companies will be able to apply for credit lines under the program. The Brazilian government reduced the minimum required revenue impact from 5 percent to 1 percent. The changes were announced last week.

With this measure, exporting companies and suppliers affected by US tariffs or by the economic impacts of conflicts in the Middle East will be able to access financing even if they experience smaller revenue losses.

Who is eligible

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The expansion applies to companies in Groups 1 and 3 of the Brazil Sovereign Plan:

• Exporters of industrial goods and suppliers affected by tariffs imposed by the United States (Group 1);
• Exporters of industrial goods and suppliers with operations in Middle Eastern countries affected by conflicts in the region (Group 3).

To access the credit, companies in these groups must demonstrate that exports accounted for at least 1 percent of their gross revenue during the reference period. Previously, the threshold was 5 percent.

For Group 1, revenue losses must be compared with the 12-month period from July 1, 2024, to June 30, 2025. For Group 3, revenue losses must be compared with the 12-month period from January 1, 2025, to December 31, 2025.

Group 1 includes the following sectors:

• Steel
• Copper
• Aluminum
• Automotive
• Furniture

The ordinance does not change the rules for the program’s third group, which consists of sectors considered strategic to the Brazilian economy.

These sectors include:

• Textiles
• Chemicals
• Pharmaceuticals
• Automotive
• Machinery and equipment
• Electronics and information technology (IT)
• Rubber and plastics
• Transportation equipment
• Critical minerals

Available lines

The Brazil Sovereign Plan offers financing for:

• Working capital
• Export production
• The acquisition of machinery and equipment
• The expansion of production capacity
• Technological innovation
• The adaptation of products, services, and processes

Brazilian industrial production rose 0.7 percent in April 2026 compared to March, according to seasonally adjusted data. It was the fourth consecutive month of growth, accumulating a 4.4 percent increase over the period.

The data come from the Monthly Industrial Survey, released this Wednesday (Jun. 3) by the Brazilian government’s statistics agency IBGE.

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With this result, the industry is 4.7 percent above the pre-pandemic level (February 2020), but remains 12.9 percent below the record high reached in May 2011.

Brazilian industry grew 1.7 percent between January and April 2026 compared to the same period last year.

Growth

The highlights were the extractive industries (3.1%) and the coke, petroleum products and biofuels (3.1%) segments, both growing for the fifth consecutive month.

“In these sectors, the main positive drivers came from crude oil, natural gas, and iron ore in the extractive sector and from ethanol and petroleum products, especially diesel, in the petroleum products and biofuels sector,” explained research manager André Macedo.

According to IBGE, other positive contributions to growth came from rubber and plastic products (3.1%), wood products (8.5%), textile products (4.1%), and electrical machinery, equipment, and materials (2.2%).

Decline

On the other hand, among the 11 sectors that saw a decline in production, the chemical products sector (-3.9%) had the largest impact during the month.

“Also noteworthy are the negative impacts of the pharmaceutical and pharmaceutical chemical products (-6.0%), machinery and equipment (-2.9%), motor vehicles, trailers and bodies (-0.7%), and metallurgy (-1.0%) sectors,” said IBGE.

Brazil’s Ministry of Tourism launched in Shanghai, China, the Mandarin Chinese version of the Guide to Tourism Investments in Brazil, a publication that compiles a portfolio of projects worth approximately USD 4.5 billion.

The guide highlights opportunities for investors and business groups to invest across all regions of the country – particularly in the hospitality sector, tourism infrastructure, parks, cruises, and nature-based tourism.

“The strategy targets one of the most important tourism markets, as China ranks among the world’s largest sources of tourists and the number of Chinese travelers visiting Brazil has increased considerably,” Tourism Minister Gustavo Feliciano noted.

The launch of the publication in Mandarin is part of the initiatives for the 2026 Brazil–China Cultural Year, which celebrates five decades of diplomatic relations between the two nations.

“Speaking our partner’s language is a step that brings us closer together. Tourism can serve as a bridge to expand business, foster cultural exchange, and attract long-term investments,” the minister added.

The Chinese government announced on Tuesday (Jun. 2) that it recognizes all of Brazil as a foot-and-mouth disease-free zone.

The announcement was made during Foreign Minister Mauro Vieira’s visit to China and comes after more than 20 years of negotiations.

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The decision opens up new opportunities for Brazilian beef and pork exports to the Chinese market, including products such as offal and bone-in meat.

Brazil’s agribusiness exports to China exceeded USD 50 billion in 2025.

During the presidential mission to the People’s Republic of China in May 2025, the two countries signed a “Memorandum of Understanding between the Brazilian Ministry of Agriculture and Livestock and the General Administration of Customs of the People’s Republic of China on Sanitary and Phytosanitary Measures.” The document strengthened bilateral health dialogue and helped advance measures of interest to Brazil’s agricultural sector.

* Based on information from the Ministry of Agriculture

The International Monetary Fund (IMF) released a statement on Monday (Jun. 1) praising the “remarkable resilience” of the Brazilian economy in the face of the “multiple shocks” arising from the external and domestic pressures facing the country.

According to the organization, Brazil is “relatively protected from global oil price increases stemming from the war in the Middle East.”

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This assessment takes into account the country’s status as an oil exporter and the large share of renewable energy in its electricity generation.

The statements were released following the conclusion of the IMF’s annual mission to Brazil on Friday (May 29).

According to mission chief Daniel Leigh, the indicators “point to an economic recovery in early 2026,” which should lead to a “gradual strengthening of growth to around 2.5 percent in the medium term.”

Risks

Despite the positive assessment, the IMF warns of risks in the global environment.

“The risks to the growth outlook are tilted to the downside, including worsening geopolitical tensions and tightening financial conditions,” Leigh warned.

Nevertheless, the institution acknowledges that the country’s resilience rests on important pillars. “Brazil’s strong policy frameworks, robust financial system, adequate reserves, and flexible exchange rate regime continue to underpin resilience.”

The IMF considers the recent interest rate cut appropriate but urges caution in light of inflationary pressures. It also recommends maintaining and strengthening fiscal efforts to ensure debt sustainability and create room for investment.

According to the organization, structural reforms and the environmental agenda are expected to drive stronger and more inclusive growth in the medium term.

Finance

Finance Minister Dario Durigan commented on the IMF’s recognition of the Brazilian economy’s resilience and reaffirmed that the government’s main goal is to achieve sustainable annual growth of at least 4 percent.

According to him, this outcome will be driven by a significant increase in productivity.

Durigan advocated continuing the government’s efforts to improve state efficiency, “backed by political leadership capable of leading serious discussions with society on Brazil’s economic challenges and advancing a fair and sustainable growth agenda.”

According to the minister, dialogue with the IMF helps support macroeconomic management efforts aimed at balancing debt and controlling inflation, while strengthening social programs and environmental protection.

He reaffirmed the government’s fiscal commitment, even in the face of external shocks, as a way to ensure that measures to mitigate the impact of the crisis remain fiscally neutral.

Data released by the Ministry of Labor and Employment indicate that 85,888 formal jobs were created in April. The figure reflects the difference between hiring and layoffs.

The total is 62.3 percent lower than in March, when the country created 227,974 jobs.

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Job creation fell 63.9 percent compared with April last year, pressured by high interest rates and the economic slowdown. In the same month of 2025, 238,216 jobs were generated.

Among the months of April since 2020, this was the second-lowest result in the series, surpassed only by April 2020, when 981,342 jobs were lost at the beginning of the COVID-19 pandemic. Changes in methodology prevent comparisons with years prior to 2020.

Sectors

By division by sector of activity, three of the five sectors surveyed created formal jobs in April.
• Services: +69,601 jobs
• Construction: +23,525 jobs
• Industry (manufacturing, extraction, and other activities): +9,256 jobs

Two sectors shed more jobs than they generated in April: agriculture, with a loss of 8,378 jobs, and commerce, with 8,114 fewer jobs.

Traditionally, April is a weak month for commerce. In agriculture, the layoffs are due to the end of the soybean harvest and the demobilization of apple and orange crops.

Formal contract

With the creation of new jobs, the number of workers with formal contracts ended April at 47,810,425, an increase of 0.18 percent compared with March and 2.26 percent compared with the same month last year.

The Brazilian economy grew 1.1 percent in the first quarter of 2026 compared to the last quarter of 2025. Over the past 12 months, there was a two percent expansion.

The gross domestic product (GDP) was announced Friday morning (May 29) by the statistics bureau IBGE.

Compared to the same period last year, GDP growth stands at 1.8 percent.

In current values, Brazil’s GDP reached BRL 3.3 trillion in the first quarter, approximately USD 646 billion.

Sectors

Comparing the two consecutive quarters, the three sectors surveyed showed growth – agriculture (2%), industry (1%), and services (0.5%).

Industry accounted for 23 percent of GDP in the first quarter. Within the sector, the activities that most drove growth were mineral extraction (3.6%) and construction (2.9%).

The services sector, which accounts for 70 percent of the Brazilian economy, was driven by growth in information and communication (2.4%), real estate (1.2%), other service activities (0.8%), and trade (0.6%).

Household consumption expenditure (1%) and gross fixed capital formation (3.5%), which measures the level of investment, were also on the rise. Government consumption rose 0.4 percent.

Exports fell by 1.7 percent, while imports went up 4.4 percent.
 

Petrobras and Pemex - the Mexican state-owned oil and gas company - are negotiating a partnership for oil exploration and production in deep waters of the Gulf of Mexico, as well as joint refining and gas projects. According to President Luiz Inácio Lula da Silva, the collaboration is being coordinated between the Brazilian and Mexican governments.

At an event in Manaus, Lula said he received a phone call from Mexican President Claudia Sheinbaum expressing interest in the partnership. He added that Petrobras head Magda Chambriard will travel to Mexico to discuss the cooperation.

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“We are going to partner with Pemex and go to the Gulf of Mexico to see if our comrade Trump will interfere with Petrobras’s exploration at 2,500 meters [depth],” said Lula, referring to threats made by US President Donald Trump to intervene in Latin American countries.

Technical missions from both state-owned companies have been carried out in Mexico and Brazil to assess geological viability, reserves, and regulatory conditions in the region. “Petrobras is highly respected worldwide,” the president emphasized.

Investments

In Manaus, Lula took part in the announcement of Petrobras investments in the state of Amazonas. The company will invest more than BRL 2.8 billion to expand natural gas production in the Urucu Polo, in Coari, as well as in the construction of vessels at the Bertolini shipyard in the state capital.

The president argued that Petrobras should be used to generate wealth and drive the country’s development. “We have to make use of the potential of a company the size of Petrobras, which is listed on the New York Stock Exchange, where the government can appoint its management and board,” he said.

“The government doesn’t control Petrobras. We discuss Brazil’s priorities. It’s not just what Petrobras needs, it’s also what Brazil needs. If we don’t build the barges here, we won’t create jobs, we won’t generate technological knowledge, and we won’t train skilled professionals,” he emphasized.

Foreign tourist spending in Brazil totaled BRL 20.2 billion in the first four months of the year, up 9.2 percent from the same period in 2025. The data were released by the Central Bank on Wednesday (May 27).

In April alone, international tourists injected BRL 4.19 billion into the Brazilian economy, a 1.2 percent increase compared to April 2025, when the figure reached BRL 4.14 billion.

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“Our efforts to attract tourists from other countries have been intense. More than just boosting airports, hotels, and restaurants, Brazilian tourism transforms the lives of thousands of Brazilians,” said Tourism Minister Gustavo Feliciano.

New China-Brazil route

According to the Ministry of Tourism, the Brazilian government began negotiations last Monday (May 25) with China Eastern, one of China’s three largest state-owned airlines, to open routes between the two countries.

During a meeting in Shanghai, Feliciano presented proposals for cooperation aimed at expanding Brazil’s presence on the airline’s platforms, including the screening of Brazilian films on the company’s flights.

Brazilian exports of high-tech products grew 7.7 percent in 2025, but remain well below sales of low-tech goods, as per a survey released Tuesday (May 26) by the National Confederation of Industry (CNI).

High-tech products totaled USD 9.1 billion last year and accounted for just 2.7 percent of the country’s total exports. In contrast, low-tech products reached USD 130.7 billion, 37.5 percent of Brazil’s foreign sales.

The study was based on data from the Center for Foreign Trade Studies Foundation and indicates that high-tech exports remain 15 times lower than those of low-tech products.

Challenge

In a statement, CNI’s Trade and International Integration Manager Constanza Negri noted that this represents a challenge to the competitiveness of Brazilian industry.

“High-quality economic growth depends on progress in medium-to-high and high-tech sectors,” she stated.

Expanding the share of these sectors, Negri argued, is essential to diversify Brazil’s export portfolio and strengthen the international presence of domestic industry.

Manufacturing industry

The US remained the main destination for Brazilian manufacturing exports, despite a 4.2 percent decline in sales. Sales to the US market totaled BRL 30.2 billion.

China increased its purchases of Brazilian industrial products by 19.4 percent, totaling USD 22 billion in 2025. The food sector was primarily responsible for the growth in exports to the Asian country.

In terms of imports, China remained the leading supplier of industrial goods to Brazil, with sales of USD 70.6 billion.

Argentina

Brazilian exports to Argentina added up to USD 18.1 billion in 2025, up a 31.4 percent over the previous year.

This performance was driven by the auto sector, which recorded a 57.2 percent surge in sales to the Argentine market. Passenger vehicles, trucks, and auto parts led exports to the neighboring country.

For the first time, Brazil has entered the category of countries with “very high” human development. In 2024, the country reached 0.805 on the municipal human development index (MHDI), compared to 0.744 in 2012. The scale ranges from 0 to 1, with an indicator above 0.800 considered very high.

The information comes from the United Nations Development Programme (UNDP) Brazil, which released a survey on Tuesday (May 26).

The index assesses parameters related to health and longevity, education, and income generation, broken down by race (black and white) and gender (women and men). The report covers the 13-year period from 2012 to 2024.

When the United Nations program began calculating this index 30 years ago, Brazil was a country with a low MHDI, that is, below 0.555.

Education

The factor that most contributed to the increase in the MHDI during this period was education – which rose from 0.679 in 2012 to 0.798 in 2024.

Betina Barbosa, coordinator of the Human Development Unit at UNDP Brazil, highlighted the Bolsa Família program, the federal government’s cash transfer program.

“It is the Bolsa Família program that removes a huge number of children from the workforce and provides them with the means and the obligation to attend school. So, here I see the direct effect of a Brazilian public policy,” she said.

Barbosa noted that the program, created in 2003, began to show results about ten years later, precisely when the first group of beneficiaries completed a satisfactory period of schooling.

Black Families

The improvement in education indicators during this period, Barbosa went on to note, is most significant among lower-income families, which are predominantly black families.

“This is where the black population begins to show better indicators and improved educational performance. Here, the policy takes a group that was previously excluded and brings it into the debate about human development. This has been happening in an upward trend since 2016,” she remarked.

She emphasized that there is no alternative for improving Brazil’s development without including the black population in the public policy agenda. The same applies to women. “These are two serious obstacles for Brazil – racial inequality and gender inequality.”

Health care and income

Barbosa explained that, among the sub-indices, public health care policy is the one that yields the most positive results for the country, having already achieved a “very high development” score in 2012 (0.829), due to the consolidation of Brazil’s public health care system, the SUS. Still, it is the one showing the slowest growth – it reached 0.860 in 2024.

The income parameter is growing at a slow pace, from 0.732 in 2012 to 0.760 in 2024, but is now at the high development level.

COVID-19

According to the UNDP, Brazil faced a systemic crisis due to the Covid-19 pandemic from 2020 to 2022. In 2021, its MHDI stood at 0.757. Barbosa notes that the most concerning aspect was Brazil’s denial that this collapse would have negative effects on development.

“This denial and the lack of swift action to create public policies that combat systemic crises are serious,” she explained. “In terms of life expectancy, we have not yet recovered from the blow of COVID-19,” she added.

In this regard, child mortality is the indicator of greatest concern to the UNDP and is linked to public policies that require a rapid response. “There was not a sufficiently rapid response in the country regarding the impacts of COVID-19.”

The results of the survey were based on data from the Continuous National Household Sample Survey, conducted by Brazil’s statistics bureau IBGE, in partnership with the technical team and researchers from the João Pinheiro Foundation.

The financial market raised its 2026 forecast for Brazil’s official inflation from 4.92 percent to 5.04 percent. The estimate was published this Monday (May 25) in the weekly Focus bulletin by the Central Bank, which details the expectations of financial institutions for the main economic indicators.

The war in the Middle East and the resulting pressure on fuel prices and inflation led to an increase in the estimate for the 11th consecutive week. The 5.04 percent forecast is above the Central Bank’s target range of 3 percent, which has a tolerance margin of 1.5 percentage points.

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In April, food prices pressured official inflation, which reached 0.67 percent. According to the Brazilian government’s statistics agency IBGE, the 12-month accumulated index stood at 4.39 percent, still within the target range.

The inflation projection for 2027 edged up from 4 percent to 4.01 percent. For 2028 and 2029, the estimates are 3.65 percent and 3.5 percent, respectively.

Selic Rate

To achieve the inflation target, the Central Bank uses the basic interest rate (Selic) as its main instrument, which is currently set at 14.5 percent per year by the Monetary Policy Committee. At its last meeting in April, the committee reduced the Selic rate by 0.25 percentage points for the second time in a row, despite tensions surrounding the war.

In the document, the Central Bank stated that it is monitoring the conflict and the inflationary effects of a potential prolonged crisis. The Committee’s next meeting to set the Selic rate will take place on June 16 and 17.

GDP

Financial institutions’ estimate for Gross Domestic Product (GDP) growth this year rose from 1.85 percent to 1.89 percent. For 2027, the projection fell from 1.77 percent to 1.70 percent. For 2028 and 2029, the financial market expects GDP growth of 2 percent per year.

In 2025, the Brazilian economy grew by 2.3 percent, according to IBGE. Driven by expansion across all sectors, with agriculture as a key highlight, this result marks the fifth consecutive year of growth.