Lula to Offer Homes to Brazil’s Poor to Spark Growth

[Judi Lynn]

Lula to Offer Homes to Brazil’s Poor to Spark Growth (Update1)
By Andre Soliani

Jan. 8 (Bloomberg) -- Brazilian President Luiz Inacio Lula da Silva is planning to hand out more free homes in a bid to help the construction industry ignite economic growth as the first global recession since World War II looms over Latin America’s largest economy.

Lula may also increase the amount of subsidies given to the poor for the purchase of new homes and cut taxes on construction materials, according to a draft plan obtained by Bloomberg News. The details were confirmed by Jose Carlos Martins, vice president of the Brazilian Construction Industry Chamber, who took part in planning meetings with government officials.

Growth in Brazil is slowing as factories curtail production, commodity prices plunge and demand for Brazilian exports drop. With construction accounting for at least a fifth of new jobs last year, Lula is betting increased building projects will spark growth, Martins said.

“The measures will be a tool to spur economic growth and generate jobs,” Martins said in an interview.

Brazil has already injected more than 96 billion reais ($41.7 billion) into the banking system in a bid to lessen the effects of the global credit crisis, BNP Paribas said in a Jan. 6 report. The government has also cut taxes by 8.4 billion reais to stimulate consumer spending, which is responsible for about 60 percent of gross domestic product, and meet a 4 percent growth target this year.

More:
http://www.bloomberg.com/apps/news?pid=20601086&sid=aSgncEtYnJYk&refer=latin_america

[raccoon]

1. Gosh, don't tell right-wingers and Republicans. They'll either have

massive coronaries and/or insist that the US invade Brazil to stop this. :silly: