Brazil’s election result faces a challenge from Flavio Bolsonaro as Lula prepares for a fourth term amid economic pressures and a conservative-led Congress.
SAO PAULO: Brazilian President Luiz Inacio Lula da Silva has won an unprecedented fourth presidential term, defeating Senator Flavio Bolsonaro in a runoff election, according to the country’s electoral authority, in a result that challenges the recent shift toward right-wing leadership across Latin America.
Flavio Bolsonaro, the eldest son of former President Jair Bolsonaro, refused to concede defeat and said he would seek to annul the result following a Supreme Court justice’s decision to extend voting hours by two hours on Sunday.
Lula defeated Bolsonaro by more than 4 million votes after finishing behind him in the first round. The outcome marked the first time since Brazil’s return to democracy in the 1980s that a presidential candidate who finished second in the first round went on to win the runoff.
Bolsonaro’s challenge follows a campaign in which both sides sought an extension of voting hours, citing different concerns, including severe weather and transportation difficulties. Analysts said the scale of Lula’s victory made an annulment unlikely.
Mario Braga, a Latin America analyst at risk consultancy RANE, said right-wing protests could emerge in the coming days but that reversing the result was “very improbable.”
The dispute has drawn comparisons with Jair Bolsonaro’s response to his 2022 election defeat. The former president was later sentenced to 27 years in prison by Brazil’s Supreme Court for plotting a coup to remain in power.
Market uncertainty follows Lula’s victory
Financial markets reacted to the result as investors reassessed their bets on a change of government. A Tokyo-listed exchange-traded fund tracking Brazil’s Bovespa index fell nearly 15% in Asian trading, while the Brazilian real faced expectations of a sharp decline against the U.S. dollar, according to the supplied report.
Lula, 80, returns to office after a long political career marked by major comebacks. He was jailed from 2018 to 2019 on corruption charges that were later overturned, allowing him to contest the 2022 election and defeat Jair Bolsonaro.
His latest victory came despite concerns over living costs, corruption controversies and criticism of his Workers’ Party. During the campaign, Lula highlighted reductions in poverty and inequality and pointed to his government’s record on employment, literacy and deforestation.
He also promised measures aimed at easing pressure on workers and lower-income households, including a proposed nationwide system of free public transport on weekends and a 15% increase in his signature welfare program, according to the supplied report.
The result is also a setback for U.S. President Donald Trump’s efforts to strengthen ties with right-wing governments across Latin America. Canadian Prime Minister Mark Carney and regional leaders were among those who congratulated Lula, while no immediate comment from Trump or the U.S. State Department was reported in the supplied material.
Conservative Congress poses challenge
Despite the victory, Lula faces a difficult governing environment. Brazil has elected its most conservative Congress since returning to democracy in the 1980s, with Bolsonaro’s Liberal Party and allied parties potentially controlling more than 280 seats in the lower house and up to 50 seats in the Senate.
That opposition strength could complicate efforts to pass legislation, manage public spending and advance government priorities.
Economic pressures add to the challenge. The government forecasts growth of 2.3% next year, while public debt has risen above 82% of gross domestic product and high interest rates continue to weigh on the economy.
Lula will also have to address rising household debt and pressure for structural reforms from the incoming Congress. Balancing fiscal concerns with welfare commitments and his state-led growth agenda is likely to be a central test of his fourth term.
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