Economist and lawyer Elena Landau expresses pessimism about Brazil’s future. In her view, the fiscal framework provides only palliative measures, and the country needs what she calls a “sharp turn”—decisive actions to curb public spending, with unequivocal support from President Luiz Inácio Lula da Silva (PT).
“Brazil is facing a credibility crisis. No one trusts what tomorrow holds or believes that Lula will change. Therefore, Lula himself needs to change this perception,” she says.
According to Landau, the resilience of the GDP and the robust labor market will be “short-lived,” and rising interest rates and the dollar will harm the population, particularly the poorest, if the president continues to blame the financial market without acknowledging fiscal weaknesses. “That narrative about people not eating dollars has run its course. People now understand that, at some point, the exchange rate impacts food prices,” she asserts.
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Publish date : 2025-01-06 04:55:00
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