A Datafolha survey conducted on March 19-20 reveals Brazilians’ deepening economic fears, showing increased anxiety over inflation and job scarcity.
Many also believe their financial situations have worsened. Disapproval of President Luiz Inácio Lula da Silva rose slightly, from 30% to 33%.
This uptick reflects broader concerns over economic prospects, impacting 2,002 voters in 147 municipalities.
Between December and the survey, the percentage of people seeing economic decline rose from 35% to 41%.
The percentage of people noting improvements dropped from 33% to 28%.
This trend may reflect reactions to Lula’s recent actions and the slow rebound of the economy from the stagnation in late 2023.
Early 2024’s food price hikes, driven by weather issues, dampened positive news like service sector and employment growth. These factors fueled pessimistic views.
Optimism for future economic recovery dipped from 47% to 39%.
Fears of rising inflation and unemployment grew, marking a shift in public sentiment about Brazil’s economic direction and personal financial futures.
This sentiment aligns with September 2023’s mood but shows more pessimism than December’s.
While Lula’s supporters remain optimistic about financial improvement, Bolsonaro’s followers are less hopeful.
The survey also noted that 27% of households benefit from Bolsa Família, highlighting its sustained impact on a quarter of Brazilian families under Lula’s leadership.
Background
Foreign investors have pulled out R$694 million ($138.8 million) from Brazil’s B3 stock market, continuing a 10-day withdrawal streak.
This activity deepens a 2024 trend of R$24.16 billion ($4.832 billion) in net outflows, a sharp reversal from the previous year’s R$44.9 billion ($8.98 billion) inflow.
This retreat is partly due to the uncertainty in the United States over the timing of interest rate cuts following unexpectedly high inflation figures at 3.2%.
This has reignited concerns that the Federal Reserve’s efforts to combat inflation are far from over, potentially delaying monetary easing.