Brazil's successful return to the financial markets at the end of April and the strengthening of the country's currency, the real, have shown that the election of President Luiz Inácio da Silva (Lula) has not led to a collapse of foreign confidence. But nor do recent positive developments eliminate the need for structural economic reforms. Lula recognizes that progress in this area, including labor market reform, is critical if Brazil is to grow sufficiently to allow him to carry on his ambitious social agenda.
Brazil's successful return to the financial markets at the end of April and the strengthening of the country's currency, the real, have shown that the election of President Luiz Inácio da Silva (Lula) has not led to a collapse of foreign confidence. But nor do recent positive developments eliminate the need for structural economic reforms. Lula recognizes that progress in this area, including labor market reform, is critical if Brazil is to grow sufficiently to allow him to carry on his ambitious social agenda.