BRASILIA, May 12 (Xinhua) -- Brazilian Finance Minister Guido Mantega said on Wednesday that the country's economic growth in recent years has turned more people to the middle-class.
In a meeting with union leaders, Mantega said the Brazilian economy could grow 5.5 to 6 percent without macroeconomic imbalances or bubbles.
There has been a real increase in the minimum wage and reduction in inequalities during the two terms of President Luiz Inacio Lula da Silva, a former union leader. This, in turn, has allowed more people to move up to the middle class, which currently accounts for over 50 percent of the country's population, Mantega said.
"When we started the government, the minimum wage was enough to buy just a basic basket. Now it is possible to buy nearly two. The purchasing power of the minimum wage has almost doubled, which is a fundamental change in terms of reducing poverty and expanding the consumer market," he said.
While many other economies experienced a contraction in consumption last year due to the impact of the international financial crisis, Brazil witnessed strong consumption, which benefited trade and and production, he added.
The finance minister said he expected the Brazilian consumption to grow 8 to 8.5 percent, allowing employers to invest more.
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