Brazil's Federal Revenue Hits 25-Year High; Lula Aims to Process Minerals Locally
Key Takeaways
- Brazil's September federal revenue reached a 25-year high, up 1.43% to R$216.727 billion.
- Lula aims to process minerals locally, promote local currency trade within BRICS.
- FGV estimates income tax reform could inject R$ 28 billion into Brazil's economy.
- US sanctions on Russian oil may restrict Brazil's diesel imports; Russia provides 15%.
- BNDES approves R$ 5.3 billion to aid companies hit by Trump's tariffs.
Top Stories
Brazil's September federal revenue hits 25-year high, up 1.43%.
In September 2025, Brazil's federal revenue reached R$ 216.727 billion, the best result for the month in 25 years, with a real growth of 1.43% compared to September 2024. From January to September 2025, the revenue totaled R$ 2.105 trillion, a real increase of 3.49%.
Lula: Brazil wants to process critical minerals locally, use local currencies.
On October 23, 2025, in Jakarta, President Lula stated Brazil aims to process critical minerals locally and promote trade in local currencies within BRICS. He cited Brazil's significant but underexplored mineral reserves, potentially boosting GDP by R$ 243 billion by 2050.
Lula defends free trade, criticizes protectionism in Indonesia.
On October 23, 2025, during a visit to Indonesia, President Lula defended free trade, criticized protectionism, and proposed using national currencies in commercial transactions, contrasting with the dominance of the dollar.
Lula suggests Pix system as model for BRICS local currency trade.
On October 23, 2025, in Indonesia, President Lula suggested that the Pix payment system could serve as a model to facilitate trade in local currencies among BRICS countries, emphasizing the need to diversify partnerships with Asian nations.
FGV: Income tax reform could inject R$ 28 billion into Brazil's economy.
On October 23, 2025, the FGV's Fiscal Policy Observatory estimated that the income tax reform under discussion in the Senate could inject R$ 28 billion (0.2% of GDP) into the Brazilian economy, stimulating consumption and reducing inequality.
US sanctions on Russian oil may restrict Brazil's diesel imports.
On 2025-10-23, US sanctions on Russian oil are expected to restrict diesel imports to Brazil, where Russian fuel accounts for 15% of imports and the country relies on foreign sources for 30% of its consumption.
BNDES approves R$ 5.3 billion to aid companies hit by tariffs.
On October 23, 2025, BNDES approved R$ 5.3 billion in credit from the Plano Brasil Soberano to assist Brazilian companies affected by Donald Trump's tariffs, with the majority allocated to the manufacturing industry (R$ 4.38 billion).
Banking & Finance
Conglomerado Inter leads in central bank's complaints ranking.
On October 23, 2025, the Central Bank released its Q3 2025 complaints ranking against banks, financial institutions, and payment institutions, with Conglomerado Inter leading with 3,862 valid complaints.
Currency Trends
Study: 66% of Brazilian workers distrust Real, prefer foreign currencies.
On October 23, 2025, a study revealed that 66% of Brazilian workers distrust the stability of the Real and seek to receive their salaries in other currencies like the dollar or euro, due to inflation and loss of purchasing power.
Inflation Watch
Brazil controlling inflation, expects rate below 4% by end of term.
On October 22, 2025, Marcos Pinto stated in Brasília that the government is controlling inflation in Brazil, expecting it to be below 4% by the end of President Lula's term.
Brazil's weekly consumer price index increases by 0.19%.
In the third four-week period of October 2025, Brazil's Weekly Consumer Price Index (IPC-S) increased by 0.19%, according to FGV Ibre data, accumulating a 3.66% increase over 12 months.
Investment Flows
Brazil projects R$ 200 billion in highway investments by 2026.
On October 23, 2025, Transport Minister Renan Filho projected R$ 200 billion in contracted investments in highways granted to the private sector by December 2026, with a new highway auction expected weekly until the end of 2025.
Brazil attracts foreign investment, but prioritizes basic sectors.
On October 23, 2025, Valor Econômico reported that Brazil is attracting more foreign resources, but foreign investors are prioritizing basic sectors like energy and mining, contrasting with the global trend of investing in advanced industries.
Job Market Update
GPTW edition highlights future of work, top companies in Brazil.
In October 2025, Época NEGÓCIOS released a special edition on the future of work, based on the 29th edition of GPTW, which recognized 175 of the best companies to work for in Brazil, noting their average revenue growth of 14% in 2024.
Market Movers
Ibovespa closes up 0.59% at 145,721.00 points.
On October 23, 2025, the Ibovespa closed up 0.59%, reaching 145,721.00 points, with detailed performance data for various indices, commodities, currencies, and specific stocks like Petrobras PN and Vale ON.
Policy Briefing
Brazil prepares Recircula Brasil platform for tracking recycled plastics.
On October 24, 2025, the Brazilian government is preparing the Recircula Brasil platform, developed with ABDI, to track and certify the use of recycled materials from plastics. As of January 2025, it verified 40,000 tons from 304 suppliers in 11 states for 1,497 clients.
Brazil: Federal employees to receive 17.5% food allowance increase.
On October 22, 2025, MGI representatives announced a 17.5% increase in the food allowance for federal public servants, effective December 2025, with further revisions to childcare assistance and healthcare per capita planned for 2026.
Brazil to vote on fiscal package, prioritizing spending control measures.
On October 23, 2025, José Guimarães announced that Arthur Lira approved the voting of part of the fiscal package the following week, prioritizing spending control measures, while tax incentives cut will be addressed later.
São José dos Campos approves new tax amnesty program.
On October 23, 2025, the Municipal Chamber of São José dos Campos unanimously approved a bill authorizing a new amnesty program for fines and interest on debts incurred up to September 30, 2025, with varying discounts based on value and payment method.
Petrobras seeks reduction in environmental compensation for Amazon drilling.
On October 23, 2025, Petrobras requested Ibama to reduce the environmental compensation from R$ 39 million to R$ 3.9 million for drilling an exploratory well in the FZA-M-059 block in the Amazon River mouth, Amapá, after receiving a license on October 21, 2025.
Brazil imposes secrecy on Itamaraty telegrams related to JBS.
On October 24, 2025, the Lula government imposed a five-year secrecy on two Itamaraty telegrams related to the Batista brothers and JBS's business in the United States, citing the Law of Access to Information to protect negotiations and international relations.
Correios crisis poses risk to Brazil's fiscal target.
In 2025, the Independent Fiscal Institute (IFI) warned that the crisis at Correios poses a risk to meeting Brazil's fiscal target, with the state-owned company needing over R$ 20 billion and potentially requiring government compensation.
Brazil considering new measure to cut spending after MP rejection.
On 2025-10-23, the federal government is discussing sending a new provisional measure to Congress to ensure an immediate cut in expenses, after the rejection of the original MP that aimed to save R$ 10.7 billion.
Trade Winds
Indonesia, Brazil sign eight cooperation MoUs in Jakarta.
On October 23, 2025, Indonesia and Brazil signed eight memorandums of understanding (MoUs) in Jakarta, covering energy, mining, science, technology, innovation, sanitation, phytosanitary standards, and statistics.