Lula has “little or nothing” of trust among financial market agents

Financial market agents say they have little or no confidence in President Luiz Inácio Lula da Silva (PT), according to a survey by Genial/Quaest released this Wednesday (12). The survey pointed out that, despite the extremely low confidence index, the government’s economic policy is starting to show future improvement.

According to the survey, distrust in Lula is 95% (little or nothing), 4% for “more or less” and 1% for “a lot”. On the other hand, the president of the Central Bank (BC), Roberto Campos Neto, has “a lot” of confidence from 72% of the interviewees, 22% of “more or less” and 6% of “little or nothing”.

The negative survey for Lula contrasts with the evaluation of the progress of Brazilian economic policy, which points out that it is in the right direction, having grown from 10% in the May assessment to 47% now.

Those who consider the opposite dropped from 90% to 53%, reflecting recent approvals in Congress of the new fiscal framework and tax reform. Another 21% believe that the situation will get worse and 26% that nothing will change.

The survey also shows that 54% of respondents claim that foreign investment in Brazil will increase in the coming months, 39% that it will remain the same and 7% that it will decrease.

The same expectation of improvement in the economy has been revealed weekly by the Central Bank’s Focus Report, which pointed to a drop in inflation and an increase in GDP (Gross Domestic Product) since the year for the eighth consecutive week, in addition to the forecast that the basic interest rate end 2023 at 12%. It is currently 13.75% and should start to be gradually reduced from August onwards.

Genial/Quaest interviewed 94 people linked to investment funds based in the state of São Paulo and Rio de Janeiro between the 6th and 10th of July, such as managers, economists, analysts and decision makers in the financial market.