Brasil
May 22nd, 2026
1. Government expands rules for digital platforms
The federal government has issued new decrees that expand the liability of digital platforms in cases involving scams, fraud, and content related to online violence. The measures update rules connected to the Internet Civil Framework (Marco Civil da Internet) and establish stricter mechanisms for how tech companies must operate, including the possibility of being held liable even without a prior court ruling in certain situations. The change follows the Brazilian Supreme Court’s (STF) recent interpretation on the matter and reinforces the requirement for platforms to take preventive action against content deemed criminal.
The decrees also create specific obligations in cases of digital violence against women, with guidelines focused on faster removal of offensive content, expansion of reporting channels, and the adoption of protective measures in situations involving threats, harassment, and online exposure. The new rules broaden the debate around the limits of big tech regulation in Brazil, amid ongoing discussions about digital security, combating online crimes, and potential impacts on freedom of expression.
InfoMoney: Lula endurece regras para big techs e amplia responsabilização por conteúdo
2. End of the 6×1 work schedule fuels debate over labor market impacts
The proposal to reduce the weekly working hours from 44 to 40 has returned to the center of labor and economic discussions, with studies pointing to possible effects on the country’s labor supply. According to research cited in the debate, the change would require the equivalent replacement of 5.1 million workers, in a scenario where unemployment is close to historic lows. The impact would be more intense in economically dynamic regions such as the South, Southeast, and Center-West, where parts of the market already face difficulties in hiring professionals.
In addition to pressure on hiring, the study indicates a potential increase in hourly labor costs, especially in labor-intensive sectors such as retail, food services, and transportation. On the other hand, supporters of the proposal argue that shorter working hours could boost productivity, reduce turnover, and attract workers who are currently outside the formal labor market. As discussions progress in Congress, negotiations are expected to focus on transition rules, business adaptation, and the potential economic effects of the change.
O Globo: Fim da escala 6×1 pode ampliar escassez de mão de obra em regiões mais produtivas do país, diz estudo
Estadão: Sem acordo sobre transição relatório de PEC do fim da escala 6×1 é adiado para próxima segunda
3. Inflation forecast raised to the Upper limit of the target in 2026
The government has revised its 2026 inflation forecast upward, increasing the estimate for the IPCA from 3.7% to 4.5%, exactly at the upper limit of the target range set for the period. The update was released in the Macrofiscal Bulletin by the Secretariat of Economic Policy and mainly reflects the effects of the war in the Middle East on oil prices, as well as impacts from exchange rates, interest rates, and recent inflation coming in above expectations. Since the start of the conflict in Iran, fuel prices in Brazil have risen significantly, increasing pressure across various sectors of the economy.
Despite the upward revision in inflation, the Ministry of Finance maintained its GDP growth forecast at 2.3% for 2026, supported primarily by the industrial and services sectors. For 2027, the inflation forecast was also raised, from 3% to 3.5%, while the economic growth projection was kept at 2.7%. The outlook continues to be influenced by expectations regarding the path of interest rates and developments in the global energy market.
Exame: Governo altera projeção de alta do IPCA em 2026 de 3,7% para 4,5%
4. Market raises inflation and interest rate forecasts for 2026
Financial market expectations for inflation and the benchmark interest rate have risen again, according to the Focus Report released by the Central Bank. The projection for the IPCA in 2026 increased for the tenth consecutive week, reaching 4.92%, keeping inflationary pressures elevated. Among the factors monitored by analysts are the rise in oil prices driven by tensions in the Middle East and their potential impact on fuel, energy, and overall price levels in the economy.
The forecast for the Selic rate at the end of 2026 was also revised upward, from 13% to 13.25% per year. Meanwhile, estimates for GDP growth and the exchange rate remained stable, with economic expansion projected at 1.85% and the dollar at R$5.20 by the end of the period. The movement reinforces the market’s view that interest rates are likely to remain higher for longer amid a more challenging inflation scenario.
CNN Brasil: Focus: Mercado eleva projeção e passa a ver Selic a 13,25% em 2026
5. GDP preview indicates economic acceleration at the start of 2026
Brazil’s economic activity gained momentum in the first quarter of 2026, according to the Central Bank’s Economic Activity Index (IBC-Br), considered a proxy for GDP. The indicator grew 1.3% between January and March compared to the previous quarter, accelerating from the 0.37% increase recorded at the end of 2025. The result was mainly driven by industry, which expanded 1.3%, while agriculture and services both grew by 1%.
The performance reinforces a scenario of an economy that remains relatively strong, even amid a high interest rate environment. Growth is taking place alongside consumption stimulus measures, such as expanded credit, the release of FGTS funds, and tax reductions. Despite this, both the financial market and the Central Bank continue to project a slowdown for the rest of the year, as part of efforts to contain inflation and ease price pressures. The official GDP data for the first quarter will be released by IBGE at the end of May.