Brazil’s Lula says economy to grow ‘more than pessimists think’

BRASILIA (Reuters) -Brazilian President Luiz Inacio Lula da Silva said on Monday he believes the country’s economy will grow “more than pessimists think” as his administration sets up new programs to be launched on its 100-day mark next week.

The new investment plans come as Lula reinforces economic growth as a top priority, calling for investments from both the government and private sector to boost gross domestic product (GDP).

Lula said at a meeting with ministers he was particularly optimistic with a proposal for public-private partnerships (PPPs), noting there were a lot of investments to be made in sectors such as industry, agriculture, science and technology.

“Our obsession must be making Brazil grow again,” the leftist leader said, although noting he didn’t agree with forecasts of slow GDP growth of less than 1% this year.

“I think we’ll grow more than the pessimists predict. More things are going to happen in Brazil than people are expecting,” he said, right after a central bank poll of private economists showed on Monday they expect GDP to grow 0.9% this year and 1.48% in 2024.

Lula, who said he believes Congress will pass his proposal for a new fiscal framework aimed at balancing limits on spending growth with a vow to boost social programs, noted ministers were now outlining new investment plans to be presented next Monday.

After the cabinet meeting, his Chief of Staff Rui Costa told reporters the plans would include both government and private capital, saying the government wishes to create a culture of PPPs in Brazil.

He also said Lula would sign this week an executive order on sanitation aimed at attracting investments and further allowing investment funds to inject money into projects in the sector.

Costa did not provide further details, but said investments could reach more than 100 billion reais ($19.73 billion), citing estimates from the ministry of cities.

($1 = 5.0689 reais)

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