The U.S. on Monday night gave Brazil a permanent exemption from new steel and aluminum tariffs, the Brazilian government said. The exemption followed a month of negotiations on the issue. However, neither the U.S. nor Brazil offered details on the agreement leading to the permanent exemption. The exemption came the same day a temporary exemption lapsed. The U.S. also offered permanent exemptions to Australia and Argentina while extending the temporary exemption to others, including the European Union. Earlier this year, the U.S. raised tariffs on steel imports to 25% and on aluminum to 10%. Brazil complained, saying its imports to the U.S. were mainly raw steel purchased by U.S. steel companies for further processing. The tariffs might have cost Brazil about $1 billion in exports.

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Brazilian tax revenues soared in the first quarter of 2018, aided by an economic recovery and hikes in fuel taxes, the Federal Tax Authority said Tuesday. First-quarter revenues were R$366.4 billion, up an inflation-adjusted 8.4% from the first quarter of 2017. Late last year, the government hiked taxes on most fuels. Revenues are also rising because of a broad economic recovery and because of government programs to encourage payment of tax arrears. Higher revenues should help the government reach its fiscal goals for 2018. The government’s goal is a primary budget surplus no greater than R$139 billion.

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The International Monetary Fund, in its latest global economic outlook, released Tuesday, boosted its projection for economic growth in Brazil, citing rising investment and consumer spending. The IMF now forecasts GDP expansion of 2.3% this year and 2.5% in 2019. In its previous forecast, in January, the IMF was eyeing growth of 1.9% and 2.1% for 2018 and 2019, respectively. The IMF said Brazil’s economic recovery was swifter than expected, partly because of unexpectedly low inflation and partly because of an uptake in private investment. Brazilian inflation is currently running at less than 3.0%. Low inflation has allowed the Brazilian Central Bank to slash interest rates, setting the stage for more consumer buying and more investment by businesses, the IMF said. The government’s program of concessions and privatizations is also attracting private investment.

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Brazilian inflation took another surprising turn in March, with the monthly rate near zero and the annual price spiral declining to a level well below government targets. Monthly inflation in March was 0.09%, down from 0.32% in February, the Brazilian Census Bureau (IBGE) said Tuesday. The 12-month rate declined to 2.68% as of March from 2.84% the previous month. The government’s target for 2018 inflation is a range of 3.0% to 6.0%. With inflation now running consistently below the target range, economists are expecting more cuts to Brazilian interest rates. The country’s base rate is currently 6.5%. In March, fuel prices declined while some services rose. Food and consumer goods prices were broadly stable.

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A top presidential aide and confidant, Wellington Moreira Franco, was named Sunday night to be Brazil’s new Minister of Mines and Energy. President Michel Temer’s office said Moreira Franco, 73, will take over the post from outgoing Minister Fernando Coelho Filho, who will seek election to Congress in October. Moreira Franco will give up his position as a top adviser to Temer, but he will retain his chairmanship of Brazil’s Investment Partnership Program (PPI), which oversees the government’s concessions and privatizations plan. Moreira Franco is a veteran politician, a long-time member of Congress, former Governor of Rio de Janeiro and a member of President Temer’s party, the Brazilian Democratic Movement (MDB). In his dual role as Minister and PPI Chairman, he will preside over auctions of oil-block rights, the partial privatization of utilities holding company Eletrobras and other concessions and privatizations.

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