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Lula da Silva faces five economic hurdles as Brazil's new term begins

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Brazilian President Luiz Inácio Lula da Silva is beginning his fourth term with substantial economic difficulties ahead. Growing public debt and elevated interest rates are constraining government spending and adding pressure to household budgets. His assurances about fiscal discipline sit uneasily alongside promises to lift the minimum wage at a pace above inflation. A conservative-leaning Congress could obstruct his plans for economic reform. Such obstacles may make it harder to carry out fiscal measures seen as essential.

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