Latin America News
LAST UPDATE: September 30, 2025
Brazil’s finance minister says public finances cannot be fixed without economic growth
Finance Minister Fernando Haddad argued that restoring fiscal health in Brazil depends on reviving growth, not just spending cuts.
Insight
This underscores a policy tradeoff: Brazil needs stimulus to spur growth but must balance it with debt sustainability pressures.
Brazil central bank still sees signs of economic resilience, says governor
The Central Bank of Brazil’s governor said that despite headwinds, the economy shows resilience, including a still-strong labor market.
Insight
That view supports cautious optimism: even under tight monetary policy, Brazil may avoid deeper contraction.
Brazil bank lending slows further in August as tight monetary policy bites
In August, credit growth in Brazil decelerated to 10.1% year-on-year, reflecting the drag from high interest rates.
Insight
The slowdown suggests that continued monetary tightening is dampening private sector borrowing and investment.
Brazil creates fewer formal jobs than expected in August
Brazil’s labor ministry reported 147,358 net formal jobs created in August, below the 160,000 estimate.
Insight
Weak job creation adds risk to consumer strength and could erode political support for tight fiscal or monetary stances.
As Peru election nears, economic gains seen at risk, OECD says
The OECD warns that political uncertainty and instability ahead of Peru’s elections could undermine recent economic gains, including investor confidence and growth momentum.
Insight
Strengthening fiscal rules, structural reforms, and consensus-building will be critical to sustain growth in a divided political environment.
