Ernst & Young Looks At The Social And Economic Impact Of The 2014 World Cup On Brazil
A study by Ernst & Young revealed the 2014 World Cup in Brazil will produce a "surprising cascading effect on investments" made in the country. The economy will "snowball, increasing by five times the total amount invested directly in event-related activities" and impacting various industries. In addition to the R$22.5B ($11B) spent by Brazil on the World Cup to ensure an "adequate infrastructure and organization," the event will bring an additional R$112.8B ($55.3B) to the country's economy, with "indirect and induced effects being produced thereafter." In total, an additional R$142.4B ($69.8B) will flow in Brazil from '10 to '14, generating 3.6 million jobs a year and R$63.5B ($31.1B) of income for the population, which will "inevitably impact the domestic consumer market." Not to mention an additional R$18.1B ($8.9B) in tax collections. The tourist inflow "directly and indirectly induced" by the FIFA tournament is expected to account for an additional income of up to R$5.9B ($2.9B) for Brazilian companies. The World Cup may also "put an end to Brazil’s five-year stagnant foreign tourist inflow," from the current 5 million to an estimated 7.5 million until '14 and 8.95 million in '18 (Ernst & Young).