Business during FIFA

4. 3.5
3
2.5
2
1.5
1
0.5
0
GDP growth %
2013.5 2014 2014.5 2015 2015.5 2016 2016.5
GDP growth %
*As forecasted by World Bank

5. • Brazil spent $ 14 billion on infrastructure
and organization.
• Major infrastructure spending on –
– Stadiums
– Airports
– Port and urban mobility
• Harbinger of expected future growth.

6. $3.6 billion spent on 12 new and
refurbished stadiums across 5
cities
Boosted core sectors like steel,
cement and power
Plan to spend 25% on stadium
and 75 % on other projects like
transport, security and
communication failed.
Cost overrun by 75 %

7. Transportation development
generated long term benefits
Introduction of monorail, metro
and expansion in airport handling
capacity
Many projects were scrapped due
to delays and cost overrun
Only 36 of planned major 93
projects completed

8. Brazil attracted 6,00,000 tourists
during the world cup from more
than 180 countries.
62 % visited country for the first
time
Generated more than 15 per cent
of the 4.8m jobs created during
the nearly four-year-long
administration of president Dilma
Rousseff
Opportunity for tourism sector to
convert one time visitors to
frequent visitors

9. $1 billion boost to food and
beverage industry
Industry set to explore “Fan
Parks” concept of selling drinks
and fast food
Boost may be temporary in
nature.
Food prices artificially jacked up

11. • The domino effect of direct actions can be
clearly seen as a series of economic,
social and cultural developments.
• Interconnected nature of economics leads
to intermediate spending.
• Opportunities for other exporting nations.
• HSBC business expectation index moved
to 73.3 in July, 2014 from 52.2 in 2013.
• Brazil’s win in world cup would have
sustained the Domino effect

12. • Intensified protests against huge spending
on infrastructure in a country which high
poverty levels.

13. • Stadiums and other infrastructure would
end up standing like white elephants

14. • Fuelled inflation that may not end up with
World Cup

15. • Corruption and mismanagement.
• Accidents, delays and cost overruns.
• Using new infrastructure to return to
growth trajectory.

16. • Improving standard of living
• Using tourism industry for long term benefits.
• High quality sports development program
The World Cup has put an end to Brazil’s five-year
stagnant foreign tourist inflow, from current 5 million to
7.48 million until 2014 and 8.95 million in 2018…

17. Is it a success story?
Since 1974 winners outperformed markets
for the month following the finals.
Even host nations outperformed even after
losing the world cup
Businessmen and corporate flock to such
events.
Sombre mood of fans can leads to reduced
investor confidence.

18. Better luck next time …Brazil!!
Thank you