News Update :

FIFA Confederations Cup Brazil Added R$9.7 Billion to Brazilian GDP

Tuesday, 8 April 2014



Today the Brazilian Ministry of Tourism published an economic impact study of the FIFA Confederations Cup Brazil 2013, which was held in June 2013 in Brasilia, Belo Horizonte, Fortaleza, Recife, Rio de Janeiro and Salvador. The study’s findings show financial transactions for the period, their effect on GDP and job generation, as well as provide input for forecasts in relation to the 2014 FIFA World Cup Brazil.

According to the study conducted by the Economic Research Institute Foundation (FIPE), the tournament led to a total of R$ 20.7 billion in financial transactions including R$ 11 billion in expenditures by tourists, the Local Organizing Committee (LOC), as well as private and public investments. The other R$ 9.7 billion corresponded to income added to the Brazilian GDP. At the World Cup the expectation is that three times this value will be made in transactions, possibly reaching R$ 30 billion. 

Of the R$ 9.7 billion, 58 percent was spent in the host cities and 42 percent in the rest of the country.

“The result shows that the tournament's impact is not restricted to host cities. It has an impact on the whole of Brazil,” stated Brazil’s Minister of Tourism, Vinicius Lages.

The study analyzes the direct and indirect impact on the economy. As bases for calculation, the sum of public and private investments in infrastructure (R$ 9.1 billion) were used, in addition to how much national (R$ 346 million) and foreign (R$ 102 million) tourists spent, plus investments made by the Local Organizing Committee (LOC) for the event (R$ 311 million). From these amounts, the multiplier effect across the different sectors of the economy was assessed.

Lastly, the impact of the Confederations Cup on job generation was measured. The equivalent of 303,000 jobs were created, taking into consideration the concept of "equivalent man/year” which does not mean that the same number of new jobs was necessarily created. Part of the demand for new employees may have been met by overtime or simply by using current employees more efficiently. From this total, 60 percent were in host cities and 40 percent in the rest of the country.

Rio de Janeiro recorded the highest number of financial transactions among host cities (R$ 6 billion), which corresponded to a R$ 2.8 billion increase in GDP for the city. In addition, Rio de Janeiro recorded the highest number of jobs generated (59,000) among the tournament's host cities. Together, Brazilian and foreign tourists spent R$ 117 million in Rio de Janeiro.

The study polled approximately 17,000 relevant members of the private and public sector as well as tourists, and analyzed expenditures and investments made in relation to the staging of the event. Investments made for the Confederations Cup represent 77 percent of the total investments anticipated for the tournament’s six host cities in 2013 and 36 percent of the total predicted for the twelve World Cup host cities. Data are based on the April 2013 version of the World Cup Responsibility Matrix.


Culled from Worldfootballinsider
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