For 70%, Brazil’s economic situation is bad or very bad, says research

Seven out of ten Brazilians consider that the country’s economic situation is bad (23%) or very bad (47%). Optimism reaches only 8% of respondents, for whom the economic scenario is good (7%) or excellent (1%).

From the consultation, 21% of those sought understand that the situation is regular, according to a survey carried out by the National Confederation of Industry, in partnership with the FSB Institute, released this Friday (10).

The survey interviewed 2,016 people aged 16 and over, in the 27 units of the federation, between the 18th and 23rd of November.

For 64% of respondents, the economy has not yet begun to recover from the impacts of the Covid-19 pandemic. Only 22% of the population believe that compared to the last 6 months, the economy has improved.

However, whether or not they agree that the recovery has started, 80% of respondents understand that the current moment is one of the worst economic crises the country has ever gone through.

Manager of economic analysis at CNI, Marcelo Azevedo emphasizes that uncertainty and the negative view of the current scenario can result in a slowdown in the chain for several productive sectors.

“This causes the population to limit some consumption decisions due to this uncertainty, this concern, and this ends up harming the demand for industrial products. It creates uncertainty about demand for the industry itself. It makes entrepreneurs decide to postpone decisions to increase production, increase employment or even investment”, he says.

The study also highlights the perception of inflation. Discharge was felt by three out of four respondents. According to the Broad National Consumer Price Index (IPCA), the country’s official inflation index, measured by the IBGE, it is at 8.24% in the year, until October, and accumulates 10.25% in the last 12 months.

The economic moment has led to spending cuts. This was a reality for 74% of respondents, the same percentage as in May 2020, at the beginning of the pandemic.

About 58% said the reduction was too big or too big. The percentages of cost reduction are the highest registered by the survey since the world started to face Covid-19.

“It’s quite worrying, not only because of the loss of purchasing power and because the population is less able to maintain a certain demand and make decisions. This situation may even become a little longer lasting. In other words, even if prices effectively stop increasing, it can still contaminate consumers’ vision for a longer time”, concludes Azevedo.

Another fact that reflects the dismay of Brazilians is the fear of losing their job. The index was 52% in July and rose to 61% in November.

For 16% the fear is very great, for 24% it is great, and for 21% it is medium. The percentage of those who are not afraid at all decreased from 32% to 21% of the employed population.

However, perceptions about the vision of the future are divided. About 34% of respondents are optimistic and believe that the situation will improve a little (27%) or a lot (7%); 27% think it will remain stable and 32% are pessimistic. For the latter, the economy will still deteriorate a lot (17%) or a little (15%).

*Under supervision of Stéfano Salles