Brazil 2016 – Giant at its Watershed
One of the biggest economy in the world has been in the centre of attention this year for multiple reasons. Football-crazy nation sacked its sitting president and held the biggest event in the world. During the Rio Olympics born many legends, who won many golds. We salute all the great athletes out there! There can be a success only when you work hard, every day.
Millions of people in Brazil desire better education and infrastructure. While they witnessed from the distance how the multi-billion dollar construction work was conducted strictly for the Olympics. This is a sports event for the whole world, and in this entertainment business, it really does not matter how big the domestic issues from poverty to pollution might be. But has it all been good for business? What kind of reputation did they leave for South America’s biggest player? Investment-wise the Olympics must have been thought to do good for the economy by the ones who fought to get the competition there.
Brazil economy in numbers:
People expected that the 2016 Olympics will boost Brazil’s economy. However, within 2016 the real GDP growth of Brazil will stay below zero and might even hit -4%. The economists have also pointed out that the 10th largest economy and the leader in South America and Latin America can dead in deep recession. Its GDP growth is especially lower than that of the world’s average and Latin American countries’ average. This is due to depressed products prices and tighter regional conditions. During 2016 and 2017, we can see a sharp recovery in Brazil’s GDP. It is due to a temporary boost from the mega-event, Olympics. But it will not last long.
Disbursed debt accounts for 3.8 billion dollars. While Brazil is mired in recession, the amount of debt combined with the low employment rate (only 54,4%) affects negatively the economic situation. Smaller numbers in growth for key exporting EMDEs would negatively affect regional trading partners. For instance, a one percentage point decline in growth in Brazil or in Russia could reduce growth in neighbouring countries by up to 0,5% on average within two years (World Bank 2016).
After the Olympics, the question arises what to make of all the costly constructions. There are some rumours about re-purposing the Rio 2016 structures. The government will tear down temporary structures and use it for building schools. They will turn the Athletes’ Village into luxury apartment complexes. Everyone is now waiting for the actual work to start.
Hard work, big rewards – Big risk, great possibilities?
Case: Brazil shows that the Olympics might be bigger than life itself but numbers do not lie. Reaching a goal is always important and the end game is yet to reveal its form. People around the planet saw what kind of great measures they took in Brazil. But in the end, all this has been possible because of hard work and a lot of planning. The saga continues when the government calculates the results. Hard work, professionalism and the ability to see the future opportunities are good elements in the business world. Success is possible only if you agree that in life, as well as in business, the school actually never ends.
Will this rule of Olympic eventually boost the economy, that is hard to tell at this point. More importantly, is the brand of Brazil and the chair in global councils more important than the opinion of the people who built it all? Who built it from the coast of Ipanema to jungles of Amazonia? Today we hope Brazil as a nation can celebrate at its finest. Get your Samba on, Saúde!
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