VOLVER

1. Lula launches international fund to protect tropical forests

At an event preceding the COP, the Climate Summit in Belém (PA), President Luiz Inácio Lula da Silva launched the Tropical Forests Forever Fund (TFFF). The initiative, presented during a luncheon with international leaders, seeks to gather global support to finance the conservation of tropical forests, which span more than 70 countries. Lula emphasized that the fund represents an innovative mechanism for environmental cooperation and sustainable development.

So far, Norway has announced the largest contribution, US$2.9 billion (R$15.5 billion), reinforcing international confidence in the proposal, which stands as Brazil’s main bet for the success of COP30. Environment Minister Marina Silva stated that France plans to invest €500 million (R$3 billion). Brazil and Indonesia have each pledged US$1 billion (R$5.3 billion), while Portugal is expected to contribute €1 million (R$6.2 million), further expanding the coalition of support for the fund.

Agência Brasil: Lula lança em Belém fundo para preservação de florestas tropicais
DW: Fundo climático lançado pelo Brasil recebe primeiros aportes

2. Central Bank keeps interest rate at 15% as precaution against structural factors

The Central Bank’s Monetary Policy Committee (COPOM) unanimously decided to keep the Selic rate at 15% per year for the third consecutive time, according to a statement released on Wednesday (5). Despite pressure from the Lula administration for rate cuts, the committee adopted a cautious stance and repeated the conservative tone of its previous statement, avoiding any indication of when interest rate reductions might begin.

The Central Bank stressed that maintaining the rate at a high level for a “considerably long period” is appropriate to ensure inflation converges toward the target. The assessment suggests that the disinflation process remains slower than expected and still depends on structural factors such as fiscal balance and external conditions, which continue to pose challenges to the Brazilian economy.

Folha de S. Paulo: BC mantém Selic em 15% ao ano pela 3ª vez apesar da pressão do governo por corte de juros
Forbes: Selic em 15%: Cautela ou Excesso? O Que a Decisão do Banco Central Revela sobre a Economia Brasileira

3. Finance minister denies possibility of fiscal imbalance

Finance Minister Fernando Haddad denied that Brazil’s fiscal performance will “explode” in 2027, responding to criticism about the country’s public accounts. In an interview with the news outlet UOL, Haddad stated that the 2026 Budget, which the Lula administration will submit to Congress, projects a fiscal surplus and adheres to the targets established by the Budget Guidelines Law (LDO).

According to the minister, the fiscal outlook is under control, and the government remains committed to budgetary responsibility. He recalled that similar predictions had been made during the passage of the Transition PEC but did not materialize. Haddad emphasized that the economic team is finalizing the Budget text with a focus on ensuring stability and credibility in public finances. For these reasons, he described claims that the government will fail to meet its fiscal targets as “delusional.”

UOL Economia: Haddad nega em entrevista que fiscal vá explodir em 2027

4. Senate approves income tax exemption for salaries up to R$ 5,000

The Federal Senate unanimously approved a bill that raises the income tax exemption threshold for those earning up to R$5,000 per month. The measure, which now goes to President Luiz Inácio Lula da Silva for approval, also expands partial exemptions for incomes up to R$7,350. The change aims to correct distortions in the tax brackets and ease the tax burden on the middle class and formal workers.

To balance public finances, the proposal increases taxation on individuals earning more than R$600,000 per year, about R$50,000 per month. According to the bill’s rapporteur, the measure will benefit around 25 million Brazilians and will be offset by additional taxes on approximately 200,000 high-income taxpayers, reinforcing the principle of fiscal justice promoted by the government.

CNN Brasil: Por unanimidade, Senado aprova isenção do IR para quem ganha até R$ 5 mil

5. Brazil posts trade surplus despite tariff hike

Brazil recorded a trade surplus of US$6.96 billion in October 2025, according to the Ministry of Development, Industry, Trade and Services. The result represents a 70.2% increase compared to the same month last year, when the surplus totaled US$4.1 billion. Exports reached US$31.98 billion, up 9.1% from 2024, while imports fell 0.8%, totaling US$25.01 billion.

The growth in the surplus occurred despite a sharp drop in sales to the United States, which plunged 37.9% following the tariff hike imposed by President Donald Trump in August. According to the government, the strong performance was driven by higher exports of agricultural and mineral commodities, as well as a recovery in shipments to Asia and the European Union.

Carta Capital: Brasil tem superávit de US$ 7 bilhões em outubro, apesar do tarifaço de Trump