MercoPress. South Atlantic News Agency

Lula da Silva promises to teach lessons how to address an economic crisis

The Brazilian president ever so optimistic says the worst is over.

President Lula da Silva said 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 da Silva 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 da Silva 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 da Silva 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.