Brazil Pulse - 95% of Brazilians Think that the Country is Heading in the Wrong Direction - June 2017

95% of Brazilians believe that the country is in the wrong direction, 84% consider Michel Temer’s administration bad or very bad, the consumer confidence index is still stagnant at 68 points (on a scale that goes from 0 to 200) and the feeling of worry and outrage with the future of Brazil remains at concerning levels.

In addition, the ‘Barômetro Político’ (Political Barometer), who in June evaluated 32 personalities with electoral potential, has shown an increase in disapproval towards all of them (including Judge Sergio Moro and other members of the judiciary). This phenomenon comes along with the growing distrust with the political class as a whole, as well as with parties, institutions, sectors of the economy and large companies. In the eyes of the Brazilian public opinion the society is broken.

These perceptions bring with them a number of consequences. The first of them addresses the political and social stability itself through which Brazil is going through -78% of the public opinion has no expectation for the future of Temer's Administration. In equivalent proportions, Brazilians support the resignation, impeachment or the non-continuity of the current President. It is hard to create a positive agenda in the current context.

As signaled in our bulletins, this scenario of political instability and economic crisis continues to affect consumer confidence and their buying habits. These indicators still continue to have a negative perspective, be it regarding the perception of the current financial situation that people have of themselves, be it regarding the perspective of the future – within 6 or 12 months.

Another relevant consequence of the current scenario is the leadership void that has been created in Brazil. The five most approved personalities are Sergio Moro (63%), Luciano Huck (44%), Joaquim Barbosa (42%), Tiririca (33%) e Carmen Lúcia (29%). Former President Lula is in sixth place with 28% approval. These results indicate that 2018 is shaping up to be a reflection of the 1989 elections, with considerable political fragmentation, very dispersed in terms of parties and candidates and names that have no links to traditional politics have great possibilities - the so-called outsiders.

Finally, a last major consequence of the current scenario must be taken into consideration. Historically, Brazilians have classified politicians as “birds of a feather” and this phenomenon seems to be occurring in sectors of the economy and large companies -especially on the account of some that are involved in corruption scandals, this according to preliminary data shown in Ipsos' ‘Barômetro de Reputação Corporativa’ (Corporate Reputation Barometer). Sectorial and Corporate Reputation has never been so necessary as it is in Brazil today.