Not Promise But Guarantee from Lula: All Will Be Better in Brazil, in 2006

Brazilian President Luiz Inácio Lula da Silva "ensured" Monday that the Brazilian economy will grow even more in 2006, in spite of general and presidential elections. However, market forecasts are not so enthusiastic.

"I’m not promising, I’m guaranteeing the Brazilian people that Brazil will develop much more in 2006, with a more vigorous and more solid expansion," said President Lula in his last radio program of the year.

"I believe 2006 will be exactly what I’m telling you, a year in which industry will grow more, employment will increase, incomes will increase and I’m sure everything is going to be better in 2006," he added.

But private analysts are not so convinced following the deceleration of the third quarter, which has led them to downgrade growth estimates for 2005 from 3% to 2.5%, and 3,5% for next year, according to the Central Bank monthly poll among the leading businesses of the country.

Finance Minister Antonio Palocci stated Friday that the Brazilian economy is poised to expand 5% in 2006.

Mr. Lula has insisted that although 2006 is an election year, "elections can’t become an obstacle, should not become an obstacle, will not become an obstacle" for the government development plans.

"Obviously we’ll have a political dispute which always generates much discussion but I think the role of the president is to ensure that politics don’t dominate the daily management of government or the country’s development".

President Lula has still to announce if he will be running for re-election. His popularity has suffered severely following revelations of a network of illegal payments orchestrated by his Workers Party to buy support in Congress for the government’s legislative agenda.

President Lula insisted that Brazil is now a country with international credibility, "with its books in order" and with the necessary robustness "to cancel in advance its debts with the International Monetary Fund".

"We’re making decisions with no interference from the IMF or any other multilateral organization," he highlighted.

The latest Central Bank poll also indicates that business leaders expect lower interests since the reference rate began a steady four months slide last September from 19.75% to the current 18% and hopes of a further cut in January to 17.5%, probably ending 2006 at 15%.

But economic agents also believe that foreign direct investment in Brazil will remain stabilized in US$ 15 billion both in 2005 and 2006, contrary to earlier forecasts in excess of US$ 16 billion.

Mercopress – www.mercopress.com

Tags:

Ads

You May Also Like

Brazilian Spirit: In Search of a Purer, Nobler Cachaça

Cachaça (pronounced ka-SHA-sa) can be found in every single boteco (bar) in Brazil for ...

Brazilian Killed in London to Be Buried in His Hometown Tomorrow

The body of the Brazilian, Jean Charles de Menezes, 27, who was mistakenly killed ...

In Brazil, Buggies Never Go Out of Style

The buggies, those little hoodless cars with fiberglass bodies and large back wheels, have ...

Brazil Enters B4 Era: 4% of Biodiesel Is Added to All Diesel

Brazil will be soon holding an auction to meet the need for increasing the ...

Flooded with Cash, Saudis Arrive in Brazil Ready to Invest

Four important Saudi executives are arriving in Brazil today to learn more about the ...

Brazil’s Lula Can’t Be Like All the Others

Brazilian President Lula da Silva should stop repeating partial projects and embody an alternative ...

The Real Lesson of Brazil’s Cicarelli Hot Video and YouTube Ban

Usually I write about political stuff. Or serious things. But stay with me. This ...

Brazil Approves New Antiblindness Treatment

Eyetech Pharmaceuticals announced yesterday approval of Macugen in Brazil for the Treatment of Neovascular ...

Helal kebab made in Brazil

Brazil to Sell Arabs Conforming-to-Islam Kebabs

Trade representative Alexandre Bonavita, from the southeastern Brazilian state of Rio de Janeiro, wants ...

20 Indian Tribes Get an Audience in Brazil’s Capital

About 60 indigenous people attended an audience with representatives of Funai, Incra, Funasa, Ibama, ...