The World Cup will actually make things worse for the former postercountry for emerging markets, even before the locals burn Rio to the ground after the home XI go out in the quarterfinals.
As many as 600,000 tourists are expected to flock to Brazil this summer for soccer’s biggest tournament.
Will that translate into a meaningful boost to South America’s largest economy? Don’t bet on it, Moody’s Investors Service says in a report today. For all the eyeballs and visitors the World Cup will draw, they say the event is likely to have “fleeting effects” on Brazil….
“We see little impact on Brazil considering the limited duration of the World Cup and the size of the country’s economy,” Moody’s said.
“Crowding and traffic will make it more difficult to move goods and provide services, and may dissuade consumers from routine daily shopping, hurting apparel retailers, drugstores and retail fuel sales, for example,” Moody’s says. Ditto for the country’s massive resource sector, including iron ore mining and sugar and coffee growing.
World Cup Won’t Be a Game Changer for Brazil [WSJ MoneyBeat blog]