Brazil needs more credit and fewer taxes to grow: Lula

10:57, October 27, 2009      

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Brazil's President Luiz Inacio Lula da Silva said Monday that Brazil needed more credit and fewer taxes in some sectors in order to become one of the largest economies in the world.

"We need to do things the right way," Lula said, adding that with those two measures, "no inventions and no magic" would be necessary.

In his weekly radio show, Lula recalled an International Monetary Fund (IMF) study which predicted that the country could become the fifth largest economy in the world by 2016, if it kept growing at the same pace.

The president was pleased to mention the improving employment situation. According to figures released by the Brazilian Labor Ministry and the Institute of Geography and Statistics (IBGE), the unemployment rate in the country fell to 7.7 percent in September, and an additional 232,000 new jobs were created during the same period.

Lula believed the Brazilian economy was on the right path, as industry and trade were increasing, and employment levels were also growing.

However, Lula stressed the need to boost consumption in the country in order to step up economic activity even more. He said Brazil needed several years of growth in order to compensate for the decades in which the country did not develop properly.

"What Brazil needs is to have several consecutive years of growth so that we can generate more jobs, more wealth, increase the workers' gains. Society will have more power of purchase, companies will produce more, and we will generate more jobs. It is a wheel that can never stop spinning," he said.

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