President Lula, a former union leader, is Brazil's first working-class president. Since taking office he has taken a prudent fiscal path, warning that social reforms would take years and that Brazil had no alternative but to maintain tight fiscal austerity policies. Economic growth in 2004 and the first half of 2005 was strong with increases in employment and real wages. Growth slowed somewhat in the second half of 2005, but rebounded modestly in 2006. | President Lula, a former union leader, is Brazil's first working-class president. Since taking office he has taken a prudent fiscal path, warning that social reforms would take years and that Brazil had no alternative but to maintain tight fiscal austerity policies. Economic growth in 2004 and the first half of 2005 was strong with increases in employment and real wages. Growth slowed somewhat in the second half of 2005, but rebounded modestly in 2006. |