0

0.5

1

1.5

2

2.5

3

3.5

2013.5 2014 2014.5 2015 2015.5 2016 2016.5

GDP growth %

GDP growth %

*As forecasted by World Bank

• Brazil spent $ 14 billion on infrastructure

and organization.

• Major infrastructure spending on –

– Stadiums

– Airports

– Port and urban mobility

• Harbinger of expected future growth.

$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 %

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

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

$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

• 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

• Intensified protests against huge spending

on infrastructure in a country which high

poverty levels.

• Stadiums and other infrastructure would

end up standing like white elephants

• Fuelled inflation that may not end up with

World Cup

• Corruption and mismanagement.

• Accidents, delays and cost overruns.

• Using new infrastructure to return to

growth trajectory.

• 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…

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.

Better luck next time …Brazil!!

Thank you