LATAM POLITICS TODAY-Strong Brazil GDP boosts Bolsonaro's re-election efforts

The latest in Latin American politics today:

Strong Brazil GDP boosts Bolsonaro's re-election efforts BRASILIA - Brazil's economy picked up more than expected in the second quarter, boosted by consumer spending and a services recovery, providing a tailwind for President Jair Bolsonaro as he seeks re-election in October.

The country's gross domestic product (GDP) expanded 1.2% in the three months to June, government statistics agency IBGE reported, better than the 0.9% growth forecast in a Reuters poll of economists. Bolsonaro, who trails leftist former President Luiz Inacio Lula da Silva in opinion polls, has focused efforts on economic initiatives to boost his popularity, boosting cash handouts to lower-income families and adopting tax measures to curb inflation.

Guatemala, Taiwan agree to boost diplomatic cooperation, training GUATEMALA CITY - Taiwan and Guatemala have signed an agreement to boost diplomatic cooperation and reaffirmed mutual support during a visit by the Central American country's foreign minister to the island, the Guatemalan government has said.

Taiwan and Guatemala sealed an accord on the exchange and training of diplomatic personnel, the Guatemalan foreign ministry said in a statement, days after foreign minister Mario Bucaro in Taipei vowed to "always support" Taiwan. Guatemala is one of only 14 countries to retain formal diplomatic ties with Taiwan, and one of three allies left in Central America, alongside Honduras and Belize.

Brazil's Guedes says calamity decree could make room for higher welfare program in 2023 RIO DE JANEIRO - Brazilian Economy Minister Paulo Guedes has said that the continuation of the Ukraine war could make the government sign a calamity decree, which would make room for a higher welfare program in 2023.

The maintenance of 600 reais ($114.88) monthly payments under the Auxilio Brasil program is one of the main promises of President Jair Bolsonaro in his quest for reelection in October. But in next year's budget bill, the government reduced cash handouts to 400 reais because keeping the current level would require circumventing the spending cap rule, and there is no legal provision for this so far.

(Compiled by Steven Grattan Editing by Frances Kerry)

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