Samantha Pearson and Luciana Magalhaes reporters from the "Wall Street Journal" wrote an article on October 31 of this year called "Brazil’s President-Elect Promises Prosperity but Faces Economic Perils." In this article, the reporters talk about how Lula Da Silva won back the presidency and how he promised prosperity but faces economic difficulties. Brazil's new president promised his supporters a better life, but he will struggle to deliver those promises with the current economic climate the world is passing through. When Mr. Lula Da Silva first took the office in 2003 the situation was totally different since the country was growing rapidly, China was consuming everything Brazil had as natural resources, the state scoffers were full, the government was paying its debts early to the FMI and the government had the money for social spending. Now the situation is totally different because Brazil's economy is going to grow by 2.6% this year and next year by only 0.6% and Brazil's debt is now hovering at about 80%. Finally, Lula promised the poor to increase the minimum wage and pardoned some debt to increase consumption at the cost of increasing spending in an economic downturn to support the poor and increased his rating at the expense of the country's fiscal health.
Sergio Bracco
