World Cup Brazil 2014

The Minister of Sports of Brazil presented yesterday the results of a study conducted by the Brazilian Governments about the impacts of the World Cup 2014 in the Brazilian Economy.

According to the study, from 2010 until 2019, the World Cup 2014 will aggregate R$ 183.2 billion to the Economy; at today’s rate of US$ 1 = R$ 1.75, or € 1 = R$ 2.33, that amount equals approximately US$ 105 billion or € 79 billion. According to IBGE, the official Brazilian Institute for Geography and Statistics, the Gross Domestic Product of Brazil in 2008 was about R$ 2.9 trillion, which means that the World Cup may bring an increase of about 6% to the Economy.

Still according to the study, the impact on the Economy will be more relevant in Brazil than it was in the Cups of France, Germany and South Africa.

Always according to the study, “direct investments will be of R$ 47.5 billion, to be invested in infrastructure, tourism and consumers expenditure; the balance, R$ 135.7 billion, will be of indirect investments, derived from the recirculation of money during the event.”

In infrastructure alone, total expenditure will be R$ 33 billion, 78% of which will come from the public sectors. An amount of R$ 5.7 billion will be invested in stadia, R$ 11.6 billion in urban mobility and R$ 5.5 billion in ports and airports. Other areas which will get a share of the investments: telecommunications, energy, health, tourism.

Tourism alone will aggregate R$ 9.4 billion to the Brazilian economy. During the World Cup, Brazil expects to receive 600,000 foreign tourists, and other 3.1 million Brazilians should also travel within the country.

The World Cup should create 710,000 jobs (330,000 permanent and 380,000 temporary jobs). Permanent payrolls will increase by R$ 6.8 billion, and temporary payrolls by 1.6 billion; this will cause an increase of more than R$ 5 billion in expenditures of the Brazilian families.

From 2010 to 2014, tax collection should increase by R$ 17 billion; according to the Government, this is 33 times bigger than the US$ 500 million in tax exemptions claimed by FIFA.

“The impact in the Gross National Product will be of R$ 135 billion, until 2019. This happens because investments, consumption and tourism continue, even after the World Cup.”

This entry was posted on Tuesday, April 27th, 2010 at 4:05 pm and is filed under business, infrastructure, stadium, travel.