Brasília, 12/7/2004 (Agência Brasil) - With optimism, but also caution, was the way president Luiz Inácio Lula da Silva described how he felt about the news of record industrial output in May. Production was up 2.2%, the highest since September 2003. Speaking to the nation during his fortnightly radio talk, "Breakfast with the President," Lula explained that the reason for caution was because his government wanted "long-term, sustainable growth," not just a good month.

"That is why we have to be cautious. That is why we are working patiently. That is why we ask the people to pay attention to what is happening in Brazil," said Lula, adding that the measures his administration was implementing to ensure sustainable growth could have been put in place a long time ago.

The president pointed to more financing for agriculture, especially family farming, and easier credit access for workers. "Banks are making these loans at low interest rates, microfinancing is expanding, the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social) (BNDES) has a lot of money for corporations that want to invest in projects that create growth, jobs and income distribution," the president declared.

Repórter:Marcos Chagas
(Translator: Allen Bennett)