Brazil at a Crossroads: Choosing Between Democracy and Regression

• Brazil faces a pivotal election on October 4, weighing social progress and equality against the return of exclusionary politics and institutional instability.
• The current administration highlights its achievements in social programs and economic recovery compared to the previous era.

Economic and Social Performance

• Unemployment hit a historic low of 5.3% in August 2026, with 103 million people employed.
• Poverty rates declined from 27.3% to 23.1%, while extreme poverty reached its lowest level of 3.5% since 2012.
• Over 15 million workers benefit from a new income tax exemption for those earning up to 5,000 reais.
• Women's employment grew by approximately 20.5%, reflecting active government efforts toward gender equality.

Security and Corruption Combating

• Intentional violent deaths dropped to 19.1 per 100,000 inhabitants in 2025, the lowest rate since 2012.
• Authorities launched 'Operation Carbono Oculto' in August 2025, targeting money laundering operations by criminal syndicates involving billions of reais.
• The government continues to investigate and expose corruption schemes linked to the previous administration involving banking and pension fund mismanagement.

International Trade and Diplomacy

• Exports reached a record high of 348.7 billion USD in 2025, resulting in a 68.3 billion USD trade surplus.
• The Mercosur-EU agreement entered into provisional effect on May 1, 2026.
• Brazil achieved these results despite facing significant financial deficits inherited from the previous administration and external tariff pressures.