Consumer and industrial confidence in Brazil are the lowest out of all surveyed countries
A study published by Fundação Getulio Vargas’ Brazilian Institute of Economics (FGV IBRE) shows that consumer confidence and industrial confidence are the lowest in Brazil within a group of analyzed countries. Consumer confidence plummeted more intensely in Brazil than in other countries severely affected by the COVID-19 pandemic, such as Italy, Spain and China.
In April, FGV’s Consumer Confidence Index (ICC) and Industrial Confidence Index (ICI) in Brazil experienced record declines of 39.3 and 22.0 points, respectively, reaching all-time lows. The results in May and June indicate a recovery, due to reduced pessimism. The study also shows that consumer confidence dropped more sharply in Brazil than in developed countries and other emerging countries, and it has recovered more slowly here so far.
Brazil has also had the weakest recovery in industrial confidence, regaining just 8% of its losses between the start of the pandemic and May. Spain regained even less, 4%, while Portugal and South Korea reached all-time lows in May, but none of these countries saw such a steep drop as Brazil. On the other hand, China, which lost more than 40 points of confidence in this period, is now above the pre-crisis period. The short-term outlook for Brazil is still difficult, considering high and resilient uncertainty, which is at the highest level out of all the surveyed countries, and also bearing in mind that prospects before the pandemic were for a slow and gradual recovery.