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Brazil Is Teaching World How to Deal with Economic Crisis, Says Lula

Lula and oil Lula and oil

Lula and oil Brazilian President, Luiz Inácio Lula da Silva says that Brazil is overcoming the current global crisis and is in a position to teach other countries how to address the adverse economic situation.

"The Brazilian economy could be in a better shape if it wasn't for the world crisis, but I think Brazil is going to teach many people how to address an economic crisis," underlined Lula in his Monday weekly radio program.

Brazil has managed to cope with the situation and help the economy recover with anti cyclical measures such as an increase in public spending in infrastructure and the reduction of taxes on productive activities, he added.

As Brazil other emerging economies such as Russia, China and India have been able to overcome the crisis and can show the world their successful experiences.

"This is precisely the purpose of the coming BRIC summit next Wednesday in Russia, since the four countries (Brazil, Russia, India and China) make up over half the world population and a significant piece of the global consumption cake."

"We're emerging economies; each of us has its own problems, but also virtues and we want to be in agreement in serious issues, particularly for the G-20 so we can ensure that policies applied in our countries prevail; that is anti-cyclical measures to confront the current situation adequately."

Lula then talked about the contraction of the Brazilian economy during the first quarter of this year, "which was 0.8%, much better than what was forecasted by economists."

Obviously as a president committed to creating jobs and increasing per capita income "I would have liked the economy to expand 5%; I feel a bit disappointed but the fall is a consequence of the world crisis, and other countries feared worse. What matters is that the worst is over and that the Brazilian economy is showing strong recovery signals."

Because of the increase in public spending in investments and infrastructure, foreign investors "are returning to the country and businessmen have recovered their confidence in Brazil."

"The Brazilian economy is in order: we were the last in joining the crisis and we are going to be the first in getting out."

However Lula pointed out that the GDP contraction in the first quarter was caused by some panic in certain sectors of the Brazilian economy, such as the auto industry, that paralyzed production and cleared inventories.

"I hope and expect that businessmen recognize that Brazilian workers and consumers helped sustain the economy, so let's keep investing in Brazil."

"I insist I'm optimistic and believe the worst of the crisis is over," underlined the Brazilian president.

Mercopress

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  • Show Comments (7)

  • NS

    ch.c.
    ch.c., I am sorry to disagree with you, you are right when you say that CHina and India are doing much better than Brazil, but Russia?? Argentina?? Venezuela?? I’m sure you know better than that. For Russia, take a look at this article: http://www.absolutbrazil.info/article-brics-emerging-markets-and-the-world-economy/ . Venezuela is almost in social chaos, as oil doesn’t recover to over US$ 100. Argentina will shrink by 3% ion 2009 and is in political chaos and inflation is close to 18%. Of course Brazil could do much better, but we are now in an historical moment: interest rates below 10% for the first time in history. Do you know what it means? If you can read in Portuguese, take a look at this article from EXAME: http://portalexame.abril.com.br/revista/exame/edicoes/0945/economia/vamos-ganhar-juro-baixo-476588.html (if they ask you for a password, use ‘libreville’

  • Fsinatra

    Brasil
    Viva Brasil
    Dessa vez nos teremos mais oportunidades para nosso filhos!
    Parabems Lula!

  • João da Silva

    ch.c
    Thanks, ch.c for your objective reply. I wish you had posted your comments in the other site to enable others (especially TomLlyods) to read. However the reason I addressed to you was to get a neutral opinion. Your comments make lots of sense.

  • ch.c.

    Joao
    sorry I didnt see your question.
    My answer is simple :
    NO WAY ! it is not a free market currency ! Just manipulated by its government !
    What is China going to do over time with their exports to the USA ?
    China is totally dependent for exporting to the USA and the EU.
    Their trade surplus is about US$ 450 billion with the USA & the EU but have a trade DEFICIT of about US$ 200 billion with other
    emerging nations, notably due to their commodities imports !
    Brazil and other BASIC commodities countries export their Noooo value added commodities to China. China transform these commodities to more value added goods and then re-export these goods to developed nations.

    What is globalization ?
    Developed nations allow more imports only if the exporter IMPORTS…POLLUTION !!!!!!
    End result ?
    China is already by now the World largest polluter ! Brazil is also a large polluter when you measure on a PER OUTPUT BASIS !!!
    Example : Brazil has a heard of 200 millions cattles. Right ? But every cattle pollute far more than a…CAR !
    No doubt that I say….VIVA BRAZIL when you export more…MEATS !
    Every cattle produces 12 dungs…PER DAY !
    KEEP THEIR DUNGS…AND WE WILL BUY MORE MEATS FROM YOU…OVER TIME ! PROMISED !

    The certainty is that developed nations will have FRESHER AIR but emerging nations have already POLLUTED AND SMELLY AIR AND FAR MORE POLLUTED SOILS AND RIVERS/LAKES.
    Your further pollution growth rate is GUARANTEED !
    And who produces the most pollution on a per output basis ON EARTH ? SAUDI ARABIA !!!!! Guess why !
    Why do you think the USA have not built ONE oil refinery over the last 30 years ? Due to lack of money, know how ? Hmmmmm !
    Better to import MORE AND MORE…GASOLINE, DIESEL from Saudi Arabia and no doubt from…. BRAZIL in the future…in view of the welcomed Petrobras decision to build many refineries so that YOU COULD ADD A LITTLE VALUE TO YOUR FUTURE OIL PRODUCTION AND FUTURE GASOLINE/DIESEL EXPORTS…TO THE USA AND THE EU !!!!!

    Just think about it !

    Hopefully China will also in the future EXPORT some gasoline/diesel after having imported far more oil ! No problem for developed nations as long as supplies are diversified to guarantee the availabilty of gasoline/diesel in case of political crisis !
    And so that they will compete with other Saudis or Brazilians refineries.

    😀 😉 😀 😉 😀 😉 😀 😉

  • João da Silva

    ch.c
    I am still awaiting your answer to my question I asked you in the sister site regarding the Yuan dominating the entire world one day. 🙂 🙂

  • ch.c.

    Simple as Lula said….
    jUST DEVALUE YOUR CURRENCY BY 35 %…AS HE DID…IN BARELY 6 MONTHS !!!!!!!!!

    Why doesnt Lula has a look of how China did and continues doing ?
    Even India has been and continues to do MUCH better than Brazil !
    Hmmmm….and and and look at Argentina, your cousin, doing a hell of a lot better than….BRAZIL !!!!!!!
    Same for Russia and even Venezuela

    Feel free to continue…LAGGING…..OTHER EMERGING NATIONS !
    You wont beat them anyway ! Guaranteed.
    Losers can only lie, cheat and hide so that they can continue caressing their navel. Also Guaranteed !

  • forrest allen brown

    YES IF YOU HAVE NOTHING YOU WONT MISS IT
    the only people in brasil hurt by the world as it is today is the very poor .
    as the rich still want to make there 40% profit so they have to cut pay or raise prices
    to the poor .
    but that is the only ones lula is talking to any way .

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