RIO DE JANEIRO, BRAZIL – A survey conducted by the National Confederation of Industry (CNI) shows that 7 out of 10 Brazilians consider Brazil’s current economic situation bad or terrible. For 80% of respondents, this is one of the worst economic crises the country has ever faced.
The CNI survey, conducted by the FSB Institute, interviewed 2,016 Brazilians 16 and older in the 27 federal states between November 18 and 23. The error margin is 2 percentage points plus or minus.
According to the survey results, 56% of Brazilians consider that the economy has worsened over the last 6 months. Only 22% feel that it has improved. The outlook for the future is divided: 34% are optimistic, 27% believe that the situation will improve somewhat, or greatly (7%); 27% feel that it will remain stable, and 32% are pessimistic. For the latter, the economy will worsen somewhat (15%) or very much (17%).
“A careful and educated look at the international scenario shows that countries that were better able to tackle the economic crisis generated by the pandemic have a solid industry. The solution to reverse the current situation in Brazil lies in investing in innovation and approving structural reforms that improve the business environment in the country. This is the way to generate jobs and income,” said CNI chairman Robson Braga de Andrade.
INFLATION AFFECTED 3 OUT OF 4 BRAZILIANS
One of the main reasons why Brazilians felt the negative impact on their budgets was soaring inflation. In October, the IPCA (index that regulates price increases) stood at 1.25%, reaching 10.67% in 12 months.
According to the survey, 29% of Brazilians believe that inflation will continue to rise. Another 25% think it will rise a little. Given the hardship, 74% of respondents had to reduce their spending, a percentage equal to May 2020, at the start of the pandemic. Among those who said they had reduced their expenses, 58% say that the cut was very large (20%) or large (38%).