05/16/2014 – 09H54

Questions on the government’s economic policy, inflation and public debt are again the main concern of economists in relation to Brazil.

And, coupled with recurrent complaints in recent years, such as lack of manpower and low competitiveness, it worsened the perception of the economic climate in the country.

This is what a FGV (Fundação Getulio Vargas) survey measuring the perception shows. In April’s survey, Brazil rating position reached the lowest level since 1999 and was just ahead of Venezuela among Latin American countries.

Brazil fell to 71 points, compared to 89 points in January, remaining way below the average of the last ten years (121 points).

The survey is quarterly and based on economists evaluations on indicators such as investment, consumption and interest rates, among other items. In April, 159 professionals in 18 countries in Latin America were heard.

The rating score is made with views on the current situation and expectations for the future. In the case of Brazil, the worst rating is about the current situation (68 points), while there is some optimism about the next six months (74 points).

Ratings below 100 points are considered unfavorable.

“What has changed in Brazil is a very large deterioration of macroeconomic conditions, inflation and government confidence. These were problems that did not appear before,” says Lia Valls, responsible for the FGV survey.

Of the 11 main countries evaluated in the survey, 7 had a reduction in the index in April. Venezuela, with 20 points, appears in the last position. Bolivia shows the best results (140 points).

This does not mean that Bolivia’s economy is better than Brazil, but some progress was made in relation to its own economy. Region rating as a whole fell from 95 points to 90 points.