Brazil Economy’s Poor Showing Doesn’t Hurt Lula’s Mood or Popularity

Brazilian President Luiz Inácio Lula da Silva forecasted Friday the economy would expand 4% by the end of 2006 in spite of poor quarterly results.

The Brazilian Institute of Geography and Statistics, IBGE, reported Thursday that Brazil’s GDP grew 0.5% from the first quarter, slowing from a 1.3% expansion in the first three months of the year in part because of falling exports.

Brazil’s export sector slumped 5.1% in the second quarter from the first three months of the year, the first decline after 12 consecutive quarters of expansion.

"I had the opportunity to see the IBGE information and it is within what we had forecasted, that is to say we have a growth target of 4%," Lula told reporters after participating in a meeting with executives of Italian automaker Fiat.

According to President Lula, who is seeking a second four-year term in the October 1st elections, there are "many people scared" with the tepid GDP growth in the second quarter, but "they forget that two quarters are left for the economy to get back on course".

"We’re convinced that we’ll reach the 4% goal that we have set as our aim. We’re going to achieve the goal of getting Brazil into a lasting cycle of growth, which is what indeed is necessary," insisted the president.

However financial analysts are not so confident and believe that given second quarter results it will be difficult, but not impossible, to meet the 4% government target.

The Brazilian economy last year also experienced a modest growth, 2.3% but the Lula da Silva administration preferred to react unconcerned about recent economic data and expressed optimism looking into the future.

"I feel very good about growth prospects for Brazil’s economy; I feel good about the prospects for growth in industrial output; I feel good about growth in the auto industry," the president said.

But the fact is that the strong Brazilian currency, real, caused the first decline in export volumes in almost three years, helping slow down Latin America’s largest economy, according to official data last week.

Exporters have complained that the strong real reduces their proceeds from external sales and the competitiveness of their products. But analysts say the currency effect on the trade surplus so far is being masked by high prices for some key products, which are increasing the value of exports.

Nevertheless President Lula’s optimism seems to have caught with the Brazilian electorate because with only a month left for ballot day, public opinion surveys show him with over 50% of vote intention and 25 points ahead of his runner up, Geraldo Alckmin from the Social Democrat party. Socialist candidate Senator Heloí­sa Helena has stabilized in 12%.

The same Vox Populi survey a month ago showed Lula da Silva with 45% of vote intention and former São Paulo governor Alckmin with 24%.

Mercopress

Tags:

  • Show Comments (1)

  • ch.c.

    Basta Lula !!!!!
    Everyone could just as well scroll down on these news and find out Lula estimates for your 2005 growth rate while the year developed.
    They were ALL the time far above the reality.

    Thus either he lies openly or this guy is really stupid.

    In view of his economic performances, saying he is stupid is more appropriate…….since your growth rate was AND is the worst of all developing countries on this planet.

    In fact he is so stupid that he is proud of his achievements.

    Funny, isnt it ?

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Dollar Is Flying Away from Brazil

In the first half of November, more dollars left Brazil than entered it. The ...

Up to Half a Million Kids Exploited for Prostitution in Brazil

Brazil is among the 50 nations that  are part of the second tier of ...

2010: Brazil’s Exports to Grow 12% and Imports 24%

Exports from Brazil should reach around US$ 170.7 billion in 2010, with growth of ...

Rio Favelas Are Hurting the Brazilian Army

Rio’s favelas are not good for the Brazilian army. Conflict resolution is not the ...

For Greenpeace, Brazil Is Serious About Ending Illegal Logging in the Amazon

The Brazilian Federal Police carried out a full-size operation in Mato Grosso which resulted ...

Bolivia Accuses Brazil of Using Venezuela to Get Cheaper Gas Prices

The president of Bolivia’s state petroleum company said Monday, February 20, that suggestions Brazil ...

Brazil’s Minister Fears Balkanization of His Country

The Minister of National Integration, Ciro Gomes, affirmed today that regional disparities face the ...

Brazilian Investors Go Shopping After Recent Stock Market Sell-Off

Latin American stocks were mixed, with Brazilian shares jumping on bargain hunting and tame ...

International Passengers in Brazil to Benefit from New Gol-Varig Accord

Brazilian Airline Gol and its own subsidiary Varig entered into an agreement effective September ...

Morocco Becomes Brazil’s Main Sardine Supplier

Morocco is taking over the Venezuelan position as a supplier of sardines to Brazil. ...