The Japan Times - Triumphs and tests: Brazil's Lula marks one year back in office

EUR -
AED 4.255061
AFN 72.437749
ALL 95.956849
AMD 435.731102
ANG 2.07404
AOA 1062.461825
ARS 1618.786656
AUD 1.662133
AWG 2.08553
AZN 1.970545
BAM 1.955931
BBD 2.327766
BDT 141.80951
BGN 1.980453
BHD 0.437424
BIF 3427.94468
BMD 1.158628
BND 1.478706
BOB 7.98657
BRL 6.063064
BSD 1.155782
BTN 108.01971
BWP 15.793127
BYN 3.441446
BYR 22709.102929
BZD 2.324466
CAD 1.593438
CDF 2633.560581
CHF 0.913196
CLF 0.026707
CLP 1054.548206
CNY 7.971937
CNH 7.985639
COP 4301.83403
CRC 539.038475
CUC 1.158628
CUP 30.703634
CVE 110.272871
CZK 24.468128
DJF 205.814691
DKK 7.471365
DOP 68.584895
DZD 153.320865
EGP 60.593618
ERN 17.379416
ETB 180.456481
FJD 2.57534
FKP 0.865553
GBP 0.863867
GEL 3.145661
GGP 0.865553
GHS 12.643902
GIP 0.865553
GMD 84.579549
GNF 10130.72311
GTQ 8.852632
GYD 241.797259
HKD 9.078056
HNL 30.591184
HRK 7.526678
HTG 151.380805
HUF 388.586376
IDR 19578.490882
ILS 3.611501
IMP 0.865553
INR 108.757196
IQD 1514.101539
IRR 1523653.357824
ISK 143.60027
JEP 0.865553
JMD 182.042994
JOD 0.821447
JPY 183.741555
KES 150.157288
KGS 101.321721
KHR 4631.330575
KMF 492.416852
KPW 1042.731501
KRW 1732.26501
KWD 0.355027
KYD 0.96316
KZT 557.059279
LAK 24842.773226
LBP 103502.98783
LKR 362.935906
LRD 211.505097
LSL 19.597599
LTL 3.421126
LVL 0.700842
LYD 7.398528
MAD 10.802871
MDL 20.214443
MGA 4810.343352
MKD 61.647804
MMK 2432.688258
MNT 4135.109099
MOP 9.325025
MRU 46.137293
MUR 53.877257
MVR 17.900528
MWK 2003.743023
MXN 20.667056
MYR 4.574842
MZN 74.048192
NAD 19.595823
NGN 1586.798282
NIO 42.533036
NOK 11.339952
NPR 172.831336
NZD 1.986317
OMR 0.445484
PAB 1.155782
PEN 4.02067
PGK 4.990356
PHP 69.461469
PKR 322.629729
PLN 4.261892
PYG 7552.539085
QAR 4.226402
RON 5.095063
RSD 117.386409
RUB 94.912791
RWF 1689.720609
SAR 4.349969
SBD 9.328943
SCR 16.834338
SDG 696.334962
SEK 10.854279
SGD 1.481311
SHP 0.869271
SLE 28.444146
SLL 24295.856107
SOS 660.547148
SRD 43.2591
STD 23981.254139
STN 24.501749
SVC 10.112635
SYP 128.581659
SZL 19.590398
THB 37.827456
TJS 11.043288
TMT 4.055197
TND 3.406043
TOP 2.789697
TRY 51.379574
TTD 7.845849
TWD 37.028347
TZS 3000.845232
UAH 50.747122
UGX 4363.311444
USD 1.158628
UYU 47.093361
UZS 14090.944974
VES 528.918591
VND 30528.681279
VUV 138.407611
WST 3.184922
XAF 656.003824
XAG 0.017067
XAU 0.000266
XCD 3.13125
XCG 2.082931
XDR 0.815858
XOF 656.003824
XPF 119.331742
YER 276.506125
ZAR 19.600916
ZMK 10429.037131
ZMW 22.392598
ZWL 373.077647
  • RBGPF

    -13.5000

    69

    -19.57%

  • BCE

    -0.0300

    25.76

    -0.12%

  • CMSC

    0.2300

    22.88

    +1.01%

  • BCC

    3.5800

    71.88

    +4.98%

  • AZN

    0.4700

    184.07

    +0.26%

  • BTI

    0.5500

    57.92

    +0.95%

  • NGG

    0.0700

    82.06

    +0.09%

  • RELX

    0.4500

    33.81

    +1.33%

  • GSK

    0.1500

    51.99

    +0.29%

  • BP

    -1.2100

    43.57

    -2.78%

  • RIO

    2.6900

    85.84

    +3.13%

  • JRI

    -0.0900

    11.68

    -0.77%

  • RYCEF

    0.6300

    15.97

    +3.94%

  • CMSD

    0.0816

    22.74

    +0.36%

  • VOD

    0.1500

    14.48

    +1.04%

Triumphs and tests: Brazil's Lula marks one year back in office
Triumphs and tests: Brazil's Lula marks one year back in office / Photo: Daniel RAMALHO - AFP/File

Triumphs and tests: Brazil's Lula marks one year back in office

In the year since Brazil's President Luiz Inacio Lula da Silva returned to office, he has overseen a reduction in Amazon deforestation and some wins on the economic front.

Text size:

However, new environmental and fiscal challenges are looming for the 78-year-old leader of Latin America's biggest economy.

Here are some things you need to know about Lula's first year back in power:

- Tough political challenges -

The leftist veteran Lula narrowly won the presidency from his far-right predecessor Jair Bolsonaro in a bitter election that deeply divided Brazil, leaving him no honeymoon period at the start of his third term in office.

A week after he was sworn in, thousands of Bolsonaro supporters invaded government buildings in the capital in January 8 riots.

"Lula has to face more challenges than during previous mandates. He had no grace period and faced a hostile parliament" dominated by the right, said Andre Rosa, a political scientist at the University of Brasilia.

Nevertheless, he managed to push through significant social aid programs and the economy has been doing better than expected.

"We are coming to the end of the year in a very good situation, I would say exceptional even, when we know the state in which we found the country," Lula said after his final cabinet meeting for 2023.

- Economic wins and headwinds -

Brazil's inflation has continued to fall, and Lula -- after months of standoff with the Central Bank -- managed to obtain four consecutive interest rate cuts.

The government estimates growth of three percent in 2023, after the economy performed better than expected in first three quarters, and unemployment figures are at their lowest since 2015.

The end of the year was marked by parliament adopting a vast reform of the tax system that the business community has demanded for over three decades.

The reform was welcomed by the S&P Global ratings agency which upgraded Brazil from BB- to BB, following fellow credit rating agency Fitch which did so in July.

However, some economists warn the government could struggle to balance public finances in 2024, when growth is expected to slow.

- Environmental paradox -

One of Brazil's most high-profile challenges has been the destruction of the Amazon, and deforestation halved between January and November compared to the same period in 2022.

Suely Araujo, a senior specialist of Brazil's Climate Observatory, said that one of the factors was "increased controls" by IBAMA, the government's main environmental agency which suffered severe budget and staff cuts under Bolsonaro.

The government also approved eight new indigenous reserves, considered by scientists to be essential defenses against deforestation.

But the good news on the rainforest -- whose carbon-absorbing trees are key to the climate race -- was offset by record-high deforestation for November in the Cerrado savanna, a biodiverse region below the Amazon that has been hit by a recent surge in clear-cutting, mainly for farming.

Lula's government has also faced criticism for oil exploration projects near the mouth of the Amazon, and its announcement in the middle of global climate talks that it planned to join OPEC+, an expansion of the Organization of the Petroleum Exporting Countries (OPEC).

"Being a leader on climate and joining OPEC+ is incompatible," said Araujo.

- Globe-trotting and controversy -

Lula paid visits to the United States, China, attended a BRICS summit in South Africa and a G7 meeting in Japan, along with the COP28 climate talks in Dubai, to show Brazil was back on the international scene after ties deteriorated under Bolsonaro.

While Rosa, the political scientist said foreign relations have improved, Lula has also caused consternation with his stance on the conflict in Ukraine, where he says both Kyiv and Moscow are equally responsible for the war.

Lula has also accused Israel of committing the "equivalent of terrorism" in Gaza by killing innocent women and children in its war on Hamas.

In 2024, experts expect him to focus more on internal politics and rising crime ahead of municipal elections in October.

K.Nakajima--JT