Brazilian pessimism with financial situation increases – FEBRABAN

RIO DE JANEIRO, BRAZIL – According to the 3rd edition of the quarterly FEBRABAN Radar survey on the evolution of Brazilians’ economic expectations, approximately 2/3 of respondents said they expect more consistent signs of improvement in the economy to start only next year.

On the other end, only 9% believe in a solid recovery of domestic activity still in 2021.

The survey also showed that around 55% of the population say they do not expect their own financial situation to improve in 2021.

The result marks a slight worsening in the perception of respondents – in June, 52% said they saw no improvement prospects in their situation. Only 18% said they expected to improve their financial situation this year, a drop of 5 percentage points over June.

The survey was conducted by the Institute for Social, Political and Economic Research (IPESPE) with 3,000 people between September 2 and 7. The error margin is 1.8 percentage points plus or minus.

The rise in unemployment and the drop in purchasing power, as well as the rise in inflation, the cost of living and the interest rate are the main concerns for respondents.

For nearly 75% of them, interest rates, inflation and the cost of living are likely to rise over the next 6 months. And about half expect an increase in unemployment and a drop in purchasing power.

“Despite the prospect of economic recovery in 2022, there is a prevailing perception that some of the main aspects of the economy will worsen in the next 6 months,” points out the bank federation’s report.

The survey also indicates a preference for investing in real estate: 34% of respondents reported buying a property as their preferred investment alternative, in case the financial situation improves and there is enough left at the end of the month. In June, 27% had signaled this option.