(Bloomberg) — Disapproval of Brazil’s Luiz Inacio Lula da Silva reached the highest level of his term in December on growing frustration with the leftist president’s economic stewardship.
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Nearly half of respondents — 49.8% — said they disapprove of the president, up from 47.3% the previous month, according to LatAm Pulse, a survey conducted by AtlasIntel for Bloomberg News. Almost 48% said they approve, statistically unchanged from November.
The data marks a troubling development for the leader universally known as Lula: His job rating is now underwater for the first time since he returned to office in 2023, dragged down by pessimism hanging over the Brazilian economy and his inability to sell his approach to either investors or the public.
Despite seeing two years of robust growth and record-low levels of unemployment on Lula’s watch, Brazilians are being squeezed by high borrowing costs and simmering inflation. Investors, meanwhile, are dumping local assets over fears about growing public debt and ballooning budget deficits.
More than half of respondents described the economic situation in Brazil as “bad,” compared to about a third who said it was “good” and 15% that said it was “normal.”
Lula ended 2024 on a difficult note: A cost-cutting plan unveiled in November landed with a thud in financial circles after he tacked on new income tax exemptions for the poorest workers — a proposal meant to soften the political pain of the austerity push.
The resulting selloff plunged Brazil’s currency to an all-time low against the dollar, threatening to further fuel price increases that have already caused the central bank to start hiking interest rates again.
He fared little better with everyday Brazilians, according to the poll. The survey found overwhelming support for the tax breaks for the lowest earners, but roughly 58% of respondents said the measure didn’t change their view of the government. And while Lula has ramped up spending to juice growth, nearly 70% of respondents said they support reductions to shore up the country’s finances.
Lula, who also underwent emergency brain surgery in December, began an overhaul of his messaging strategy this week, replacing his communications minister with a veteran campaign adviser. At the same time, his economic team has started working toward a second package of spending cuts meant to help soothe investor fears about Brazil.
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AtlasIntel surveyed 2,873 people in Brazil between Dec 26-31. The poll has margin of error of plus or minus two percentage points.
–With assistance from Beatriz Amat.
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