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BEIJING Authentic Nick Jensen Jersey , Oct. 27 (Xinhua) -- Brazilian President Dilma Rousseff will face severe challenges, particularly in countering a sluggish economy, in her second term as the head of state, after she narrowly won re-election in the tight presidential race on Sunday.

Rousseff, 66, garnered 51.6 percent of the vote in Sunday's run-off, while Aecio Neves of the Social Democratic Party obtained 48.4 percent.


The election was believed to be the most bitterly contested presidential race in Brazil in two decades, mainly because of the economic slump during Rousseff's first term of four years.

In 2010, when her predecessor Luiz Inacio Lula da Silva stepped down, Brazil's economic growth rate was 7.5 percent. But after Rousseff took office, the country's Gross Domestic Product (GDP) increased by only 2.7 percent in 2011, 1 percent in 2012 and 2.3 percent in 2013. Brazil's Central Bank forecast this year's figure will be only 0.27 percent.

Meanwhile, the inflation rate has been higher than expected since 2010. A recent report from the Central Bank said economists of main financial institutions have elevated this year's inflation expectations for the fourth consecutive week, from 6.32 percent to 6.45 percent, approaching the government's official target for inflation.

Market analysts are more pessimistic about Brazil's economic performance in the next four years than they were when Lula won the 2002 election. In 2002, financial markets forecast the economy would increase by 3.5 percent, while this time, the economy is expected to grow by only 2.3 percent.

Brazil's financial markets plummeted last week when polls showed Rousseff was likely to win a second term. Ratings agencies have warned that a credit downgrade is possible unless Rousseff makes hefty spending cuts to correct deficits that have mushroomed in recent months.


While the influence of a global downturn is believed to be a contributing factor of the recession of the largest economy in Latin America, more should be focused on internal causes.

Currently, a priority that the new government needs to give to economic revival is to calibrate its economic policies, win back market confidence and realize sustainable development of the national economy.

In a victory speech, Rousseff told supporters that the government would take special moves to boost her country's economic recovery.

Rousseff said the government would continue ensuring high levels of employment and the recovery of wages, curbing inflation and fulfilling responsibility in the fiscal field.

"We will give more impetus to economic activity in all sectors, particularly in the industrial sector," she said.

"I want a partnership of all segments, sectors, productive and financial areas, and this task is a responsibility of each of us. We will continue fighting inflation and fulfilling our responsibility in the fiscal field," she added.


One of the main task for Rousseff to fulfill in her second term will be to minimize polarization Brazil finds itself in after the difficult campaign.

In the vote, Rousseff took the Amazon north and impoverished northeast, where people thought only the president would continue to protect the poor and advance social inclusion, while Neves prevailed in Brazil's richer south, southeast and central west, where people believed his market-friendly economic policies could see Brazil return to solid growth.

How to help the middle-class newcomers who have just been lifted out of poverty through the government's social programs to integrate into society and make them feel secure in economy and rights are among the major issues the new government faces.

After winning re-election, Rousseff called on "all Brazilians without exception to unite for the future of the country," and said that she was "open to dialogue."

"I honestly do not believe this election has torn the country into two. My understanding is that it has mobilized ideas and emotions which were, at times, contradictory, but which were moved by a common feeling -- the search for a better future for the country," she said.

Meanwhile, in his concession speech, Neves said: "Our top priority should be to unite Brazil," noting that he had called Rousseff and wished her success.

Rousseff also pledged to carry out political reform, crack down on corruption and end impunity with stricter legislation.

Analysts say improving public services and investing more on education, innovation, research and development are issues the new government needs to consider in the next four years.

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