Lula Wins Fourth Term as Brazil’s President, Defeating Bolsonaro

Luiz Inácio Lula da Silva has secured a fourth term as Brazil’s president, defeating Flávio Bolsonaro in a runoff election. Lula received approximately 51.8% of the votes compared to Bolsonaro’s 48.2%, according to the Superior Electoral Court.

This win follows a dramatic turnaround after Lula narrowly lost the first round of elections earlier in October. This marks the first time since Brazil restored direct elections in 1989 that a candidate has triumphed in a runoff after losing the initial vote.

The election was impacted by accusations of voter suppression, with Lula’s campaign citing issues such as suspended public transportation in key regions. In response, the electoral court extended voting hours by two hours. Bolsonaro’s campaign had requested an extension due to heavy rains affecting polling stations.

Following his victory, Lula proclaimed, “This is Brazil telling the world that the extreme right is fascist.” His win signifies a setback for Bolsonaro and his supporters, including prominent U.S. ally Donald Trump, who hoped for a continuation of pro-Trump leadership in Latin America.

With Lula now in office from 2027 to 2030, he will face a Congress largely influenced by Bolsonaro’s Liberal Party, which holds significant power. Lula’s administration must address Brazil’s high public debt and economic instability, compounded by rising interest rates.

Market reactions were swift, with the iShares MSCI ETF tracking Brazilian stocks plunging nearly 20% overnight following the election results. Lula’s supporters took to the streets in celebration, marking a significant moment in Brazilian politics.