During the 6th meeting of the Social and Sustainable Economic Development Council, the Minister of Finance stated that Lula’s administration should record the lowest inflation in history
The Minister of Finance, , stated this Thursday (4) that the Lula government should end its term with an average economic growth of 2.8%, a result that, according to him, is the highest since the government of and is only behind the first two terms of the President of the Republic, (PT). The projections, he said, are from the Central Bank and financial market institutions.
He highlighted that current indicators reinforce the improvement in economic conditions in recent years, including price control. “In four years it will be the smallest in the entire history of Brazil,” he said. During a speech at the 6th meeting of the Council for Social and Sustainable Economic Development (CDESS), Haddad stated that the government has managed to reconcile a drop in inflation with a reduction in unemployment, which he called “the best of both worlds”.
The minister added that the government should complete the term with the lowest in four years since the beginning of the historical series, estimated at 6.6%. According to him, the result reflects a warmer job market, with a drop in informality and underutilization of the workforce. “At the margin we are at 5.4%,” he said.
Haddad highlighted that the worker’s real average income reached the highest value ever recorded. “The average salary in Brazil today is a record high and reached R$3,507”, he stated, highlighting the combined impact of the expansion of formal employment and the policy of increasing the minimum wage. He also cited reduced inequality and lower prevalence of malnutrition in the country.
The minister stated that the proportion of young people who neither study nor work fell to the lowest level ever measured. “The neither-nor generation is at 21.2%. It’s high, but it’s the lowest in the historical series,” he said.
‘I am sometimes perplexed to see predictions that are repeatedly not confirmed’
The Finance Minister stated that foreign investors have been surprised by the Brazilian indicators presented by the government. According to him, the numbers on credit, investment and economic activity contrast with the predominant perception in the public debate. “Sometimes, when we take these numbers abroad, investors are surprised,” he said.
Haddad also criticized economic projections. “I am sometimes perplexed to see predictions that are repeatedly not confirmed,” he said, defending greater rigor in the estimates released by market analysts.
The minister also highlighted that development planning must consider the remaining challenges facing the economy. “When we think about development, we have to think about what we still need to do,” he said, citing structural bottlenecks that remain on the economic team’s radar.
Among the data presented, Haddad highlighted the reduction in compared to previous administrations. “The fiscal deficit during President Lula’s term will be 70% lower than that of the previous government,” he stated, classifying the result as one of the signs of recovery in public accounts.
*With information from Estadão Conteúdo
