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Brazil’s economy grows 1% in Q1

AFP

Brazil’s economy grew by one percent in the first quarter of the year, the government said Thursday, though surging inflation continues to hurt the Latin American giant.

The expansion, which was in line with analysts’ forecasts, was driven by growth of one percent in the services sector, which compensated for a 0.9 percent contraction in the agricultural sector, said the national statistics institute.

It also revised its economic growth figures for 2021, erasing what had been labeled a recession in the second and third quarters of the year.

In fact, Latin America’s biggest economy eked out growth of 0.1 percent in the third quarter, according to the revised figures — though the full-year growth figure remained the same at 4.6 percent.

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The uptick will come as welcome news to President Jair Bolsonaro, who is up for reelection in October and fighting off perceptions he has performed poorly on the economy.

The far-right incumbent trails leftist ex-president Luiz Inacio Lula da Silva (2003-2010) in the polls.

Brazilians are hurting from annual inflation that currently stands at 12.13 percent, far above the central bank’s target of 3.5 percent.

The bank has responded with one of the world’s most aggressive monetary tightening cycles, hiking the benchmark interest rate 10 straight times.

The key rate is now set at a five-year high of 12.75 percent, putting a brake on economic growth.

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International

7 in 10 mexicans born poor stay poor, new report finds

Seven out of ten Mexicans born into poverty remain poor throughout their lives, highlighting an urgent need for public policies focused on promoting social mobility through equal opportunity, according to civil society organizations.

The 2025 Social Mobility Report in Mexico, published by the Espinosa Yglesias Center for Studies (CEEY), reveals that 73% of individuals born into the bottom 20% of income households in Mexico — Latin America’s second-largest economy — continue to live in poverty based on income.

The report signals a worrisome stagnation in social mobility, defined as the ability of individuals to improve their socioeconomic standing compared to that of their parents. This lack of upward movement indicates that one’s economic origins are largely inherited, according to CEEY.

Geographically, disparities are stark:

  • In northern Mexico, 37% of those born in poverty remain there.

  • In the south, that number rises dramatically to 64%.

Gender gaps are also evident. Among those born in wealthier households, women experience less upward mobility, with a rate of 47% compared to 53% for men.

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The report also notes that 48% of economic inequality in Mexico stems from inequality of opportunity — placing Mexico among the top ten countries with the highest opportunity inequality across 50 nations analyzed globally.

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International

Spain hits record 46°C in June amid scorching heatwave

36 deaths reported due to heat wave in Nuevo Leon, Mexico

Spain registered a record-breaking temperature of 46°C (114.8°F) on Saturday, June 28, in El Granado, Huelva — a southern town near the Portuguese border — marking the highest temperature ever recorded in June in the country, according to Spain’s national meteorological agency, Aemet.

The temperature was officially recorded at 4:40 p.m. local time, surpassing the previous June record of 45.2°C (113.4°F)set in Seville back in 1965, also in the Andalusia region.

Like many parts of Southern Europe, Spain is experiencing a severe heatwave, with large areas of the country facing temperatures above 40°C even though summer has just begun.

As one of Europe’s countries most vulnerable to climate change, Spain has endured its three hottest years on recordfrom 2022 to 2024, marked by repeated heatwaves and temperature extremes.

Climate scientists have long warned that global warming is amplifying the intensity, frequency, and duration of extreme weather events such as heatwaves and droughts — trends now evident across the Iberian Peninsula and the broader Mediterranean region.

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Trump administration sues Los Angeles over sanctuary city policies

The Republican administration of Donald Trump filed a lawsuit on Monday against Los Angeles officials, challenging the city’s sanctuary policies as illegal amid an intensifying federal immigration crackdown.

The Department of Justice accused the Democratic-led city of interfering with federal immigration enforcement, arguing that its sanctuary policies have contributed to “violence, chaos, and attacks on law enforcement” recently seen in Los Angeles.

“The sanctuary city policies were the cause of violence, chaos, and attacks on law enforcement that Americans recently witnessed in Los Angeles,” said Attorney General Pamela Bondi in an official statement.

The lawsuit, filed in a California federal court, names Mayor Karen Bass, City Council President Marqueece Harris-Dawson, and the entire City Council as defendants.

While Los Angeles had long been considered a sanctuary city for immigrants, the City Council officially adopted the designation through a municipal ordinance in November last year, following Trump’s election to the presidency.

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The legal action seeks to limit local authorities’ cooperation with federal immigration agents under Trump’s policies.

With over one-third of its population being immigrants, Los Angeles has become a flashpoint in the battle against Trump’s anti-immigration agenda, which began with his campaign promise to deport millions.

Tensions in the city escalated earlier this month after an increase in workplace immigration raids, sparking mass protests downtown. The situation further intensified when Trump overrode California Governor Gavin Newsom and ordered the deployment of thousands of National Guard troops and 700 U.S. Marines to the area.

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