EDITORIAL. The longer it takes, the more expensive it gets
President Lula traveled to COP31, but still seems stuck on the outdated idea that there is "a time for politics, another for economics." As if, once the electoral campaign was over, there would be a period of rest, a kind of truce to reorganize the government and decide the next steps. There isn't.
Brazilian President Lula traveled to COP31, but his delayed actions are affecting the economy. The government's failure to announce plans has led companies to postpone investment decisions, reduce orders, and delay purchases, resulting in less activity and investment. A proposed fiscal adjustment of 0.5% of GDP for 2027, equivalent to R$ 70-80 billion, is seen as a first step in the right direction, but more ambitious measures are needed to restore confidence.
The economy relies on confidence and hope, and uncertainty can have far-reaching effects on families and businesses, potentially leading to capital flight.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
