World Cup\\\'s socioeconomic impacts on Brazilian economy

A study of the Ernst & Young Terco and the Fundação Getulio Vargas (FGV) seeks to shed light on a new scenario emerging in Brazil with the World Cup which could result in a number of opportunities for growth if adequately addressed by its public and private sectors.
The benchmark scenario used in this study indicates that the 2014 World Cup will produce a surprising cascading effect on investments made in Brazil. The economy will snowball, increasing by five times the total amount invested directly in event-related activities and impacting various industries.

In addition to the R$ 22.46 billion spent by Brazil on the World Cup to ensure an adequate infrastructure and organisation, the tournament will bring an additional R$112.79 billion to the Brazilian economy, with indirect and induced effects being produced thereafter. In total, an additional R$ 142.39 billion will flow in the country from 2010 to 2014, generating 3.63 million jobs/year and R$ 63.48 billion of income for the population, which will inevitably impact the domestic consumer market.
This production will also result in an additional tax collection of R$ 18.13 billion by the local, state and federal governments. The World Cup's direct impact on the Brazilian Gross Domestic Product (GDP) is estimated at R$ 64.5 billion for the period 2010-2014 - an amount equivalent to 2.17 per cent of estimated GDP for 2010, namely R$ 2.9 trillion.
The job creation estimated by the study primarily refers to temporary jobs only. The estimated 3.63 million jobs/year correspond, as far as compensation is concerned, to 3.63 million positions to be held for one year. The exact distribution of this number of jobs/year over the period 2010-2014 will depend on an accurate schedule of implementation of construction work and efforts.
The sectors mostly benefiting from the World Cup will be construction, food and beverage, business services, utilities (electricity, gas, water, sanitation and urban cleaning) and information services. Together, all these areas will increase output by R$ 50.18 billion.
Second to none on the list of benefiting segments, civil construction will generate an additional R$ 8.14 billion in the period 2010-2014. Total output from this segment for 2010 is estimated at R$ 144.6 billion.
Other economic segments that will take advantage of the World Cup are, for example, business services and real estate services and rental, with the former generating an additional R$ 6.5 billion and the latter an additional R$ 4.4 billion over the period.
Of the total R$ 29.6 billion in estimated costs relating to the World Cup (including visitors' expenses), R$ 12.5 billion will originate in the public (government) sector (42 per cent) and R$ 17.16 billion will derive from the private sector (58 per cent).
(1R$=0.455716 US dollar)