World Cup boost for Brazil 'to be short-lived'
BRAZIL will get a "short-lived" benefit from hosting football's World Cup, Moody's Investors Service said in a report.
The country is racing to finish delayed infrastructure projects for the June 12 start of the month-long event, where 600,000 foreign tourists and three million domestic travellers are expected to take in 64 games in 12 cities.
"The tournament will capture the world's attention, but an estimated 25.2 billion reais (S$14 billion) economic boost pales before Brazil's US$2.2 trillion economy, normal levels of investment spending and annual revenues of companies that will provide food, drink, transport, lodging and services to football fans," credit rating company Moody's said yesterday.
"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.
"While the event offers a potential reputational benefit, it could be marred by a reprise of the social unrest seen last June (when there were violent demonstrations during the Confederations Cup) or if needed infrastructure was not ready."