The British magazine ‘The Economist’ published a text, on Thursday (26), in which it reveals confidence in the new Lula (PT) government regarding the economy. According to the publication, with the PT’s inauguration now in January, “Brazil’s economic prospects are improving”.
The article cites a series of international factors, which, combined with the announcements made by the new government, could facilitate the country’s economic flow in the coming years.
In the text, the magazine made a kind of comparison between the two moments in which Lula governed Brazil and points out that the economic scenario of the early 2000s will not be repeated throughout the third term of the PT.
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For ‘The Economist’, the economic success of previous terms was the result of a combination of factors, “such as growing demand for exports of commodities from Brazil, low global interest rates and a falling dollar”.
The initial diagnosis of the third term, according to the magazine, was tragic, consisting of global and domestic elements. At the international level, the projections were of “sluggish global growth, falling prices of commodities and rising interest rates”; Internally, Lula would start the new government inheriting a political crisis with the attacks on democracy, the impacts of the pandemic on the economy and the economic problems still inherited from the Dilma Rousseff government.
The probable conclusion given this scenario, according to the magazine, was that it is “a bad moment for Lula to return to the presidency”.
Almost a month after taking office, reality is different from the forecasts and the magazine concludes that Lula’s moment “does not seem so unhappy”. This interpretation is based on the expectation with the reduction of the inflation rate in the world, the resistance of America and Europe in the face of a probable recession and the relaxation of the “covid zero” policy in China, animate the global markets, favoring Brazil .
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Furthermore, ‘The Economist’ believes that the price of commodities and the resumption of negotiations for the agreement between Mercosur and the European Union rekindle new horizons for the country. This panorama leads the magazine to conclude that the economic prospects are more positive, despite the challenging scenario.
When analyzing Lula’s experience in charge of Brazil, the magazine concludes that “it is also becoming easier to see how he can further burnish his reputation for exceptionally good timing”.
Editing: Douglas Matos
