The Business Times

World Cup won't give Brazil economy much of a kick

Capital Economics attributes this to 'structural problems'

Lee U-Wen
Published Wed, May 7, 2014 · 10:00 PM
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[SINGAPORE] Even as Brazil gets set to welcome as many as 600,000 visitors for the Fifa World Cup, the economic impact from these tourist arrivals will probably not give much of a lift, if at all, to the country's struggling economy.

This is according to a new report released by Capital Economics which went on to add that the quadrennial event will not be able to address the "structural problems" that are weighing on the South American nation's longer-term outlook for growth.

The London-based macroeconomic research firm noted that any economic benefits from hosting the tournament will come via two main channels - increased investment and greater spending, particularly by tourists.

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