Lula’s trips make foreign media more optimistic about Brazil

The trips of President Luiz Inácio Lula da Silva (PT) and the government’s narrative about the resumption of bilateral relations had positive repercussions in the foreign media in the first 3 months of 2023.

The perception abroad about Brazil’s economy improved, going from a negative result of -524 in last year’s last quarter to 444 positive points this quarter.

The data are from a survey conducted by Radar +55, the innovation hub of the BCW Group.

It analyzed 295 news items throughout the 1st quarter of this year from the leading media vehicles of 7 countries: Germany, Argentina, China, the United States, France, England, and Mexico.

“The talks on strengthening Mercosur were a highlight of the repercussion, even with some instability caused by the suggestion of a single currency in the bloc’s negotiations.”

“Another decisive factor was emphasizing the partnership with China, contemplating trade transactions without the intermediation of the dollar, infrastructure investments, and cutting-edge industry,” says the study.

In 2022 Brazil had a negative economic reputation in every month in the foreign media. The political and electoral scenario and uncertainties about the conduct of monetary and fiscal policy drove the result.

Another factor that positively impacted the 2023 result was the environment theme.

“Brazil’s participation in Davos, with environmental concerns as the backdrop of the debates, the resumption of contributions from important nations, such as Germany and Norway, to the Amazon Fund, or the direct action of the government to circumvent the situation of the Yanomami population,” says the study.

The foreign media also discusses the uncertainties associated with interest rates and inflation.

“Even though signs of confidence in the Brazilian economy have doubled their presence in the news, the consolidated prospects for improvement have not followed this movement.”

“Almost a third of the mentions still show uncertainties associated with challenges such as high-interest rates and inflation,” reads an excerpt.

The current interest rate in the country is 13.75%, and inflation is 4.65% in the accumulated 12 months.