Brazil in May 2026: the most important developments in economy
Brazil's economy in May 2026 was shaped by a run of government measures in an election year. On May 12 President Lula ended the 20% tax on international purchases and revived a law regulating fuel prices. The government also said it would issue a decree to curb gas prices and planned subsidies for gasoline producers and importers while Petrobras faced financial pressure. Petrobras and Naturgy agreed to lower gas prices from June, after Petrobras had raised piped gas prices for distributors by 19.2% on May 1. Official data put stimulus spending at R$140 billion. Lula also signed a debt relief plan with 1.99% monthly interest, offered to 28 million Brazilians, while reports said eight million companies were missing payments.
The EU-Mercosur trade deal took effect on May 1, creating a large free trade zone. German farmers voiced concern about competition from South American imports. On May 13 the European Union banned Brazilian meat imports, which reports described as a blow to the deal and which cast doubt on trade prospects. NGOs argued the ban targeted the wrong problem and could harm small producers.
Oil and energy drew steady attention. Brazil's record oil production came as the Iran war disrupted global crude flows; oil exports to China doubled, and Brazil's foreign minister said the country was ready to ramp up exports to Japan. Brazil approved an energy auction worth $515 billion, one of the largest in its history. Acelen secured $1.5 billion for a sustainable aviation fuel biorefinery, and Brazilian firms signed a $2 billion energy deal to supply a TikTok data center. BNDES sold part of its stake in Petrobras.
Elsewhere, Brazil investigated USA Rare Earth's $2.8 billion acquisition of the Serra Verde rare earths project, and the House of Representatives approved a mineral policy framework. Embraer reported a UAE order and its first contract with an Indian company. iFood and 99 said they would invest $300 million in motorcycle production in Brazil. Botafogo's football company won court approval for judicial recovery. Big tech companies asked the Supreme Court to review Lula's social media decrees.
by WorldBrief & Maksim Micheliov | AI-generated summary
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