"Who has grown more than Brazil? Very few."

In an interview with international correspondents in São Paulo, former president Lula admitted he was not satisfied with Brazil's growth, but stated he saw no need for major changes in President Dilma Rousseff's economic policy; "Obviously, our GDP is not the GDP we would like," he said, but then questioned; "When people think that Brazil hasn't grown much in the last four years, the question I ask is: 'who has grown more than Brazil?'"; he himself answered, after mentioning Peru and Chile: "they are very few"; the Workers' Party member also criticized those who think we need "a little unemployment" to bring down inflation: "We don't think that way."

July 03, 2014, 20:37 pmUpdated July 11, 2018, 08:14 pm

In an interview with international correspondents in São Paulo, former president Lula admitted he was not satisfied with Brazil's growth, but stated he saw no need for major changes in President Dilma Rousseff's economic policy; "Obviously, our GDP is not the GDP we would like," he said, but then questioned; "When people think that Brazil hasn't grown much in the last four years, the question I ask is: 'who has grown more than Brazil?'"; he himself answered, after mentioning Peru and Chile: "they are very few"; the Workers' Party member also criticized those who think we need "a little unemployment" to bring down inflation: "We don't think that way" (Photo: Gisele Federicce)

By Brian Winter

SAO PAULO (Reuters) Former President Luiz Inácio Lula da Silva said on Thursday that he is not satisfied with Brazil's low growth rate, but downplayed the need for major changes in the economic policy adopted by his successor, President Dilma Rousseff, who is seeking re-election.

Lula, who governed the country from 2003 to 2010 and is an important advisor to Dilma, said that Brazil has recently suffered from the same slowdown in growth affecting Europe and the United States, but that the country has been creating jobs at a faster pace.

The Brazilian economy has grown by only 2 percent per year, on average, since Dilma took office in 2011, and inflation has remained above 6 percent. Investors have been closely monitoring comments from Dilma and Lula, looking for signs that she might adopt a more market-friendly policy if she is re-elected in October.

"Obviously, our GDP is not the GDP we would like," Lula acknowledged in a conversation with a small group of foreign journalists.

"When people think that Brazil hasn't grown much in the last four years, the question I ask is: 'who has grown more than Brazil?'" he inquired.

A reporter mentioned that other countries in Latin America, such as Peru and Chile, had experienced greater economic growth. "They are very few," Lula replied.

Lula, 68, adopted a critical tone toward opposition leaders and Wall Street pundits who believe that whoever wins the October elections will have to make major cuts to federal government spending or reduce demand in some way to restore balance to the economy.

"Some people think that in order to bring inflation down further, we need a little more unemployment. We don't think that way," he said.

Lula stated that, if re-elected, Dilma will focus on infrastructure concessions and other measures, such as investment in science and technology, to accelerate economic growth.

He cited the investment plan of the state-owned company Petrobras, stating that it was "something exceptional".

"I think we have the conditions to recover Brazil's growth capacity, including in partnership with the private sector. The reforms we need to make are more targeted reforms."

Lula said that Dilma, who leads in the polls for the October 5th election, "has every chance of being re-elected" due to the strong job creation during her term, among other achievements.

Despite weak economic growth, the unemployment rate in Brazil has remained at a historic low of around 5 percent.