MercoPress. South Atlantic News Agency

“Things are going well” in Brazil.

Things are going well“ in Brazil and ”will be better” in the near future, President Luiz Inacio Lula da Silva said Monday upon summing up his first 18 months in office.

"I'm sure we've done a lot more than time has permitted, but a lot less than we should have," Lula told an audience of Cabinet members and congressional and business leaders.

Those attending the official ceremony in the presidential palace of Planalto heard a long, detailed account of the administration's plans from Lula's right-hand man, chief of staff Jose Dirceu.

During a presentation steeped in optimism, Dirceu cited among the most important items a sustained drop in inflation and a slight reduction in unemployment, which had begun to fall after peaking at 13 percent.

Worrisome inflationary tendencies evident when Lula took office 18 months ago have been sharply curtailed, and forecasts call for the rate to level off at 5 percent by year's end, he said.

Brazil's country-risk rating, which had exceeded 1,200 points, has stabilized at around 500. The real has strengthened, too, from four to the dollar before Lula's election to a rate of three to the greenback now.

Dirceu said he was delighted with the country's record exports and surging trade surplus - up 29 percent in the first half of this year compared with the same period in 2003. "This is a shining moment for Brazil," Dirceu said, pledging more attention to social problems, which Lula's government has been accused of neglecting in favor of ensuring macroeconomic stability.

"It's not hard to see that economic growth is a reality and more jobs are being created, but the country still has a lot of hurdles to overcome."