Brazil On Right Track To Be World's 8th Largest Economy, Says Lula Da Silva

Brazilian President Luiz Inácio Lula da Silva has emphasised that Brazil is on track to become the eighth-largest economy in the world this year. Speaking at the FII Priority Summit in Rio de Janeiro, President Lula underscored the significance of Brazil hosting the Saudi Future Investment Initiative for the first time, reflecting the rising influence of emerging economies.

"The choice of Rio de Janeiro to host this event signals the trust that the more than 1,000 participants have in our country. I'm here today to show that Brazil is worthy of that trust," stated Lula to a packed audience in Copacabana. Addressing Arab and Brazilian investors, along with officials from Saudi Arabia and Brazil, Lula defended Brazil's economic stability, noting that the country has much to offer.

The Brazilian leader highlighted that Brazil's GDP grew by 2.5% over the past 12 months, contrary to pessimistic expectations. "We're on course to become the eighth-largest economy in the world this year. By the end of our term, we could be the sixth-largest economy in the world again, as we were in 2011," declared Lula.

To achieve this goal, President Lula mentioned that his government is working on ensuring fiscal balance by increasing revenue and reducing interest rates. "The increase in revenue and the fall in interest rates will make it possible to reduce the deficit without compromising public investment capacity," he said.

The Brazilian President also discussed the country’s stance in international affairs. He asserted that Brazil has established itself as a stable entity amid global uncertainties. "We are a peace-loving country and averse to geopolitical rivalries. We talk to and negotiate with everyone who can and wants to contribute to the progress of the country and the world," he said.

Lula emphasised that Brazil will continue to play a significant role on the global stage. "In any constellation of power that forms on the global stage, Brazil's star will continue to shine. We will be there to build bridges and shorten distances," he added.

This approach reflects Brazil’s spirit during its G20 and BRICS presidencies and for COP30, which will be held in Belém in 2025. "The G20 is where North and South meet to seek consensus that brings collective benefits. It is a privileged space to combat inequalities within and between our countries," stated Lula.

Environmental Initiatives

The Brazilian leader highlighted that COP30 will be a crucial event for addressing climate change. "Without everyone's efforts, according to their responsibilities and capacities, global warming could reach catastrophic levels," he warned. Lula cited recent floods in Rio Grande do Sul as an example of climate challenges requiring significant investment for reconstruction.

He noted that COP28, held in Dubai last year, initiated a partnership with Azerbaijan and Brazil (hosts of COP29 and COP30) to enhance cooperation between current and future COP Presidencies. This partnership aims to increase climate action supporting "Mission 1.5°C".

Renewable Energy Prospects

Lula also highlighted Brazil's clean energy matrix, stating that 88% of its electricity comes from renewable sources such as biomass, hydroelectric, solar, and wind energy. "When it comes to climate issues and energy production, I can assure you there is no country that can offer what we are going to offer investors who want to produce here," affirmed Lula.

According to him, Brazil has the potential to become the largest producer of green hydrogen globally due to its large reserves of strategic minerals like niobium, graphite, nickel, and rare earths.

Lula also defended oil exploration in Brazil's Equatorial Margin while respecting environmental concerns. "The moment we start exploring the so-called Equatorial Margin, I think we are going to make an extraordinary leap in quality," he said.

FII Priority Summit Highlights

The three-day FII PRIORITY Summit is taking place for the first time in Latin America, powered by FII Institute. The event gathers global officials and business leaders from various sectors under the theme "Invest in Dignity." On its first day, over 1,500 delegates attended 66 sessions featuring more than 190 speakers.

The Future Investment Initiative Institute is a global non-profit foundation with an investment arm focused on impactful initiatives for humanity.

With inputs from WAM