Lula's Final Term Faces Steep Challenges in Brazil

Brazil's President Luiz Inacio Lula da Silva won a narrow runoff victory on Sunday, securing a fourth term with 51.8% of votes, but analysts say his final term faces severe obstacles from economic headwinds and a right-wing Congress. The incoming legislature is Brazil's most conservative since the 1980s, with opposition allies holding majorities in both chambers, likely making Lula a "lame duck" who will struggle to pass his agenda. His government forecasts only 2.3% economic growth next year, while public debt exceeds 82% of GDP, complicating his promises on welfare and minimum wage increases. Investors reacted nervously, sending Brazilian assets lower, and analysts warn fiscal policy is his biggest challenge, with some predicting impeachment efforts could begin immediately. Lula will also face Senate resistance to key appointments, including to the Supreme Court and central bank.