Blog

World Cup to Brazil’s Economy: An Opportunity or Nothing?
By admin June 11, 2014

from: www.journeylatinamerica.co.uk

from: www.journeylatinamerica.co.uk

With only two days before the opening match of the World Cup, the eyes of the world are on Brazil. Since FIFA announced that the tournament would be held in Brazil in 2007, there was a hope for Brazilian government that the megaproject would boost the economy. However, doubts on the World Cup’s benefits keep rising with the delays during the preparation stage coupled with protests and strikes.

 

According to a global sample of economists polled in May, the month-long tournament will probably add just 0.2 percentage points to Brazil’s economic growth this year, which is too small to lift the country’s economy out of its current malaise. Though a member in BRICs, Brazil’s GDP is expected to grow just 1.7 percent this year, and the expected economic impact of the World Cup is already taken account into the figure. The government pumped 26 billion reals ($11 billion) into stadiums, transportation construction, and urban mobility upgrades related to the World Cup, and politicians rely on the event to bring significant benefits so that increasingly restless citizens will be satisfied. However, a report from Moody’s Investors Service argues that the World Cup could be a quick score for the beverage, tourism, construction and broadcast industries, but the effects on the overall economy might be fleeting.

 

But not everyone is expressing pessimism. Walter Boettcher, chief economist at Colliers International, said, “the gains will come in the years following the event and will be indirect”. According to Colliers’ report released in May 2014, economic impact is only a small part of the World Cup’s goals – there are more “key non-financial takeaways”, such as national profile raising, a “feel good” factor and long-lasting infrastructure improvements.

 

The World Cup is a fantastic opportunity for Brazil to present its charm, with estimated 600,000 foreign tourists coming to the country and the worldwide broadcast of the games. But can this convert to economic growth? We will see.

 

For more information:

–       http://uk.reuters.com/article/2014/05/16/uk-brazil-worldcup-poll-economy-idUKKBN0DW1IJ20140516

–       http://www.ibtimes.com/brazil-world-cup-unlikely-be-economic-game-changer-1565503

–       http://www.cnbc.com/id/101712497

–       http://money.cnn.com/2014/05/22/news/economy/world-cup-brazil/

–       http://www.colliers.com/-/media/Files/EMEA/norway/2014%20markedsrapport/Colliers%20International%20World%20Cup%20FINAL.pdf


Thanks for sharing !


Comments are disabled.