Disapproval of the president Luiz Inácio Lula da Silva (PT) reached the highest level of the current term in December due to growing frustration with the economy.
Almost half of respondents (49.8%) say they disapprove of the president, up from 47.3% the previous month, according to LatAm Pulse, a survey conducted by AtlasIntel for the Bloomberg News.
Almost 48% said they approved of Lula, a percentage statistically unchanged since November.
Pessimism about the economy
The data raises a warning signal in Planalto, amid the pessimism that hangs over the Brazilian economy and the government’s inability to convince investors and a large part of the country’s population.
Despite two years of solid growth and low unemployment levels under Lula, Brazilians find themselves squeezed by high borrowing costs and rising inflation. Meanwhile, investors have been dumping local assets for fear of rising public debt and widening budget deficits.
More than half of those surveyed classified the economic situation in Brazil as “bad”, compared to around a third who said it was “good” and 15% who said it was “normal”.
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At the end of last year, the spending cut plan announced by the government was poorly received in financial circles, mainly due to the Income Tax exemptions for the poorest workers – a proposal aimed at softening the political cost of austerity measures.
As a consequence of market distrust, the real fell to a historic low against the dollar, threatening further increases in fuel prices, which caused the Central Bank (BC) to start raising interest rates again.
Greater support among the poorest
Lula fared slightly better with poorer Brazilians, according to the survey. There was overwhelming support for tax breaks for lower earners, but about 58% of respondents said the measure did not change their view of government.
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Lula is best rated among those with more than R$10,000 in family income (53.9% approval and 43.3% disapproval). Among Brazilians with an income of R$5,000 to R$10,000, approval is 51.5%.
Although Lula has increased spending to boost growth, nearly 70% of respondents said they support reductions to shore up the country’s finances.
The search
AtlasIntel interviewed 2,873 Brazilians between December 26th and 31st, 2024. The survey has a margin of error of 2 percentage points, plus or minus.
