LatinNews Daily - 02 June 2026

*The International Monetary Fund (IMF) has released a statement conveying the preliminary findings from an Article IV visit to Brazil, carried out from 18-29 May. The IMF highlighted that the Brazilian economy has remained “remarkably resilient in the face of multiple shocks”. The statement noted that Brazil is “relatively cushioned” from global oil price increases resulting from the conflict in the Middle East by “its status as a net oil exporter and the high share of electricity from renewable sources”. Regarding growth prospects, the IMF expects that Brazil’s economic growth will strengthen gradually to 2.5% over the medium term, although noting that growth slowed in 2025 and that the risks to the growth outlook, at least in the short term, are “tilted to the downside” due to the “further deterioration of geopolitical tensions and tighter financial conditions”. However, the IMF also highlighted “Brazil’s strong policy frameworks, sounds financial system, adequate reserves, and flexible exchange rates” which continue to “support resilience”. The statement also praised Brazil’s central bank (BCB) for helping to lower inflation and described its recent monetary policy easing as “appropriate”. Although it recognised that Brazilian authorities have “taken steps to improve the fiscal position”, the IMF called for “meaningful fiscal reforms” to “place public debt on a firm downward path”.

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