Economic activity in Brazil grew in February at the fastest pace since January 2010, a central bank indicator showed this week, in the strongest sign yet that Latin America's largest economy is emerging from a two-year recession. Bumper harvests are expected to have lifted agricultural production in the first quarter of the year, while industrial output improved on a pickup in car exports.
Brazilian President Michel Temer on Tuesday made new concessions to ease passage of an unpopular pension reform bill, leading police unions to try and invade Congress in the latest angry demonstration from a labor group.
Brazil's finance minister has said that he is ready to listen to the U.S. policies on trade at this weekend's G-20 meeting but speaks from experience when he says he believes a free economy is better for everyone. Brazil actually has experience of closing down its economy, Henrique Meirelles said on Thursday.
Brazil's central bank and finance minister denied a report that the government could raise taxes on foreign exchange transactions to help reach this year's fiscal target. Bloomberg News had reported the move was among the options being considered by the Brazilian government to meet its fiscal target, citing a source with direct knowledge of the issue.
Brazil's central government registered a primary budget deficit of 154.255 billion reais (US$49.40 billion) in 2016, meeting its target but recording a third consecutive annual deficit that reflects the dire state of the country's finances. In December, the country posted a primary deficit of 60.124 billion reais (US$19.25 billion).
Brazil's Finance Minister Henrique Meirelles has admitted that the government is going to revise its official forecast for this year's GDP growth, but gave no details as to the extent of the change. In its latest forecast, the government had estimated the economy was going to grow 1% in 2017.
Brazilian President Michel Temer on Thursday unveiled a raft of stimulus measures to reduce the debt burden of businesses and consumers struggling with the country's worst recession on record amid growing popular discontent. Although limited in scope, the measures aim to appease Brazilians angry at the deepening recession in Latin America's biggest economy and allegations of corruption against Temer and his closest allies.
President Michel Temer, fighting for survival over corruption allegations against him and his government, is planning new measures to jump start Brazil's stalled economy, improve his dismal approval ratings and stifle calls for his resignation.
Brazil's federal government reached a deal to help cash-strapped states with their fiscal woes in exchange for support from governors on deeper structural reforms including pension reform and the capping of public employee salaries.
Brazilian President Michel Temer warned on Monday that the national debt could swell to the size of the country's gross domestic product within eight years should public spending not be brought under control and fiscal reforms not enacted.