Report Predicts World Cup Will Give Brazil 'Short-Lived' Economic Boost
Moody’s Investors Service reported that Brazil will get a “short-lived” benefit from hosting the World Cup this year, according to Tariq Panja of BLOOMBERG. South America’s largest country "is racing to finish several delayed infrastructure projects" for the June 12 start of the monthlong event where 600,000 foreign tourists and 3 million domestic travelers are expected to take in 64 games in 12 cities. Moody's said, “The tournament will capture the world’s attention, but an estimated 25.2 billion reais ($11.1B) economic boost pales before Brazil’s $2.2 trillion economy, normal levels of investment spending and annual revenues of companies that will provide food, drink, transport, lodging and services to football fans.” Moody's added that the tournament will offer a “short-lived” boost to the food and beverage, lodging, TV broadcasting and car rental sectors. Hosting the World Cup carries risks from potential social unrest. Moody's: “We see little impact on Brazil considering the limited duration of the World Cup and the size of the country’s economy. While the event offers a potential reputational benefit, it could be marred by a reprise of the social unrest seen last June or if needed infrastructure was not ready” (BLOOMBERG, 3/31).