VOLVER

1. Brazil expands package against tariff hike and includes indirect suppliers

The government announced that the second phase of the “Brazil Soberano” plan will extend credit lines, guarantees, and insurance not only to companies directly affected by the 50% tariff imposed by Donald Trump, but also to their suppliers. The provisional measure that established the program provides for changes in access to the Export Guarantee Fund (FGE), which previously served only large corporations and will now be opened to micro and small businesses. In addition, funds such as FGCE, FGO, and FGI will receive injections to expand coverage against default and export risks.

According to the Secretary of Economic Policy, Guilherme Mello, the package represents a revolution for Brazil’s export sector by giving competitiveness to businesses that previously faced tax and credit barriers. The progress of the measures depends on the approval of PLP 168/2025, which is still awaiting a rapporteur in Congress. Mello also assessed that, despite the initial impact of the tariff hike, there is room for GDP to close 2025 with growth of around 2.5%, sustained by the positive effects of the economic support measures.

Valor Econômico: Pacote contra tarifaço de Trump vai incluir empresas com impacto indireto
Correio Braziliense: Lula faz segunda reunião ministerial do ano em meio ao tarifaço de Trump

2. Government launches credit program to modernize industry with 4.0 technologies

The federal government has announced a new R$ 12 billion credit line to finance the acquisition of capital goods for Industry 4.0, including robotics, artificial intelligence, the Internet of Things (IoT), cloud computing, and sensing technologies. Of the total amount, R$ 10 billion will come from BNDES and R$ 2 billion from Finep, with interest rates ranging from 7.5% to 8.5% per year. The goal is to modernize Brazil’s industrial base, which currently operates with machinery averaging 14 years old, according to the CNI, a factor that undermines the sector’s productivity.

The financing will allow companies of all sizes to invest in state-of-the-art machinery and equipment, strengthening their competitiveness in the global market. For medium and large companies, projects of up to R$ 300 million can be financed directly through BNDES, while small businesses will have access via an accredited network. According to Vice President Geraldo Alckmin, the measure is strategic for reducing costs and boosting the efficiency of Brazil’s industry. BNDES President Aloizio Mercadante emphasized that, in addition to modernizing the productive base, the initiative stimulates exports and opens opportunities for Brazil to compete in new markets.

Estadão: Como é a nova linha de crédito de R$ 12 bi para financiar tecnologias da Indústria 4.0 no Brasil

3. Brazil posts US$7.1 billion current account deficit in July

The Central Bank reported that Brazil recorded a US$7.1 billion current account deficit in July 2025, higher than the US$5.2 billion deficit registered in the same month of 2024. Over the past 12 months, the negative balance reached US$75.3 billion, equivalent to 3.5% of GDP. The trade balance posted a surplus of US$6.5 billion, with exports of US$32.6 billion (+4.8%) and imports of US$26.1 billion (+8.3%). Meanwhile, the services account registered a US$5 billion deficit, driven by higher spending on international travel, telecommunications, and intellectual property.

The report also showed a US$8.9 billion deficit in primary income, up 18.1% from July 2024, mainly due to profits and dividends remitted abroad. On the other hand, foreign direct investment (FDI) recorded net inflows of US$8.3 billion, exceeding the amount from a year earlier. FDI over the past 12 months totaled US$68.2 billion, equivalent to 3.17% of GDP, while portfolio investments posted net outflows of US$192 million in July but remain positive in the year-to-date.

CNN Brasil: Brasil registra déficit de US$ 7,1 bilhões nas contas externas em julho

4. Brazil records first deflation in two years as IPCA-15 falls

The IPCA-15, the preview of the country’s official inflation index, fell 0.14% in August, marking the first deflation since 2023. The decline was driven by a nearly 5% drop in electricity prices, due to the Itaipu Bonus. There were also decreases in food, transportation, and communication, while personal expenses, education, and healthcare rose. Over the past 12 months, the index increased 4.95%, below market forecasts but still above the Central Bank’s target.

Experts believe the relief in prices is temporary, influenced by seasonal factors and falling commodity prices. The impact of the 50% tariffs imposed by the U.S. has not yet been felt and is expected to appear in the coming months. Despite the deflation, the Central Bank’s monetary policy committee (Copom) is expected to keep the Selic rate at 15%, given domestic pressures such as a weaker exchange rate and a heated labor market.

G1: IPCA-15: preços caem 0,14% em agosto, na primeira deflação em dois anos

5. BNDES launches new phase of Floresta Viva with R$100 million for environmental projects

BNDES has launched the second phase of the Floresta Viva program, allocating at least R$100 million to reforestation and conservation projects across the Cerrado, Caatinga, Pantanal, Pampa, and Atlantic Forest biomes. The amount could reach R$250 million through partnerships with public and private entities, following the model of the first edition, which leveraged nearly R$500 million in investments. The initiative prioritizes the recovery of springs, watersheds, and areas at risk of desertification, while also strengthening biodiversity.

Unlike the first phase, the new cycle will feature successive public calls, ensuring faster approval of projects. It also includes training for social organizations connected to traditional communities, family farmers, and agrarian reform settlements. According to the bank, the initiative aims to combine environmental preservation, sustainable income generation, and climate regulation, with results expected to be showcased during COP30, in November, in Belém (PA).

Agência Brasil: BNDES usará ao menos R$ 100 mi para financiar iniciativas ambientais