Brazil: Senator Sees Inflation Drop, GDP Growth as Economic Strength

Brazil – May 28, 2025 | www.zonadeazar.com Senator Humberto Costa (PT-PE), in a speech at the Senate Plenary on Monday (26), defended the government’s economic policy amid recent criticism. He stated that current results indicate sustained economic growth, controlled inflation, and rising employment.

Despite pessimistic forecasts, Brazil continues on an upward trajectory. According to the Central Bank, the country’s Gross Domestic Product (GDP) grew by 1.3% in Q1, marking six consecutive quarters of expansion. The agricultural sector saw a strong performance with a 6.1% increase, along with growth in both industry and services.

“Every day, our government surprises the market. Inflation drops more than expected, the stock market exceeds forecasts and closes higher. It must be tough for those constantly betting against Brazil, especially with a president like Lula who is unwavering in his commitment to fiscal responsibility, economic growth, and social inclusion,” said the senator.

Costa also noted the drop in public debt, now at 75.9% of GDP—lower than levels inherited from the previous administration. He highlighted the stock market’s rise past 140,000 points and the improvement in the labor market. Brazil is now close to full employment, with rising average wages and increased household consumption, driven by credit policies and the real appreciation of the minimum wage.

“President Lula’s economic strategy is not just about figures—it’s a strong commitment to social justice. This progress continues despite the excessively high Selic rate, which many believe is necessary to fight inflation but significantly hinders our economic potential and burdens public debt with one of the world’s highest interest rates. Regardless, the government remains focused on building a stable and productive economic environment that supports jobs and well-being,” Costa concluded.

📌 Source: Agência Senado
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