Survey Reveals 90% of Financial Market Views Lula’s Government Negatively

A recent survey by Quaest highlights a significant disconnect between the Brazilian government and financial market participants. The findings reveal that a striking 90% of those surveyed view the administration of Luiz Inácio Lula da Silva negatively.

This figure aligns with the highest levels of discontent recorded in March 2023. It also shows a notable increase of 26 percentage points compared to earlier this year.

In contrast to the government’s overall performance, Finance Minister Fernando Haddad receives a more favorable assessment. Forty-one percent of respondents rate his efforts positively.

The survey was conducted online among 105 professionals, including managers and analysts from investment funds in São Paulo and Rio de Janeiro, between November 29 and December 3.

The research was commissioned by Genial Investimentos. The survey results offer a clear picture of public sentiment. Only 3% of respondents rated the government positively, while 7% considered it regular.

Haddad’s performance, while better received, still raises concerns: 61% of respondents believe his influence has waned since he took office.

Public Discontent with Brazil’s Economic Policies

A significant majority—96%—of participants feel that Brazil‘s economic policies are heading in the wrong direction. When asked about their expectations for the economy over the next year, 88% anticipate worsening conditions, with only 2% expecting improvement.

These sentiments follow Haddad’s announcement of a fiscal package aimed at revising government spending. However, many analysts have criticized these measures as insufficient.

While 88% of respondents supported the fiscal package, a majority—58%—found it “not satisfactory,” indicating a lack of confidence in the government’s approach.

Respondents also expressed skepticism about specific proposals. For example, around 85% believe that exempting income tax for individuals earning up to R$5,000 monthly could negatively impact the economy.

Furthermore, 86% think that the government is more focused on maintaining Lula‘s popularity than on implementing effective economic policies. When it comes to legislative capabilities, opinions are mixed.

About 46% view the government’s ability to push its agenda in Congress as regular, while 39% rate it low and only 15% high. Evaluating Congress itself, 41% see its performance negatively, while 38% consider it regular and just 21% positive.

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