Brazil’s Finance Minister Dario Durigan. Photo: Brazil’s Ministry of Finance

Brazil's Finance Minister Dario Durigan said on July 27 that there is no possibility of the country entering a recession in 2027, adding that Brazil could instead experience a new "boom" if the Central Bank lowers interest rates, according to a report by Brasil 247. 

Durigan said in an interview with Rádio Jornal that predictions of a recession in 2027 are exaggerated and appear to be an attempt to "force the issue" during an election year.

At the same time, the minister defended that the government should discuss and present fiscal adjustment measures, focusing on controlling mandatory spending. According to Durigan, Brazil's public debt is under control, although it remains at a high level.

He added that the main factor affecting debt dynamics is the level of interest rates, rather than the government's fiscal results.

"I defend that, soon after, still before next year, the government should already present the details of the measures. I have already presented, in general terms, what should be a reduction in mandatory spending, with a little more room for us to discuss investments," he said.

"The best way for the government to address this problem is by carrying out fiscal adjustment, correcting public accounts and seeking efficiency in public spending," he stated.

Durigan also said he intends to present Brazil's arguments against the tariffs imposed by the US administration on Brazilian products to US Treasury Secretary Scott Bessent, in a possible meeting during the G20 meetings in the US next month.

(Reported by Brasil 247 on July 27, 2026)