Brazil's Economy and World Cup 2014 Essay

Submitted By Deacon51p
Words: 348
Pages: 2

Pierre Easley
Liberty University
PPOG 502
News Article

The article I chose to read was title “Brazil's own goals” found on the website. The article explains how the 2014 world cup will boost Brazil’s economy. Economic forecasts suggest that Brazil will derive only modest economic gain from the World Cup. The Brazilian government has spent upwards of $15 billion to host the games, or roughly as much as the U.K. laid out for the 2012 London Olympics and more than triple the cost of the 2010 World Cup in South Africa. In return for those hefty expenditures, Brazil is likely to see a modest 0.1 percent to 0.2 percent bump in annual growth
The vast sums of money spent on building stadiums and other facilities are also driving up Brazilian inflation, a painful price of admission for a country where more than a fifth of inhabitants live in poverty.
"The negative side effects of hosting the WC include a lingering boost to inflation and an increased fiscal burden ... to fund the investments, whereas the bulk of the returns to be generated by the [World Cup] will be realized only with a substantial time lag and considerable uncertainty," Ashish wrote in a recent research note.
The Brazilian government certainly expects a bigger boost. A study by Ernst & Young and Brazilian think-tank FGV projected that financial gains from the tournament will amount to five times the government's investment, creating millions of jobs and ultimately adding more than