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NEWS
2016 Olympics in Rio de Janeiro: US$ 14 bi impacting
the Economy
(Source:
www.brasil.gov.br)
A study on the economic impact of the
2016
Olympic and Paraolympic Games in Rio de Janeiro,
commissioned by the Ministry of Sports, has concluded
that the public and private investments and
the Organizing Committee's expenditures for the
Games will result in
large and diversified
multiplying effects on the economy of the country. The estimated
impacts on Brazil's GDP are US$ 11 billion (R$ 22
billion) for the period 2009 to 2016, while in the
period 2017 to 2027 will reach US$ 13.5 billion (R$ 27
billion).
The analysis, done by the Institute of
Administration Foundation (FIA) of the University of
Sao Paulo, is based on the calculation
of the
value of 14.4 nominal billion dollars (R$ 28.8 billion)
proposed by Rio de Janeiro's candidacy to the Games, distributed as follows: US$
2.8 billion (or R$ 5.6 billion) for the structure of
the Organizing Committee and US$ 11.6 billion (R$
23.2 billion) in public and private resources necessary
for the infrastructure of the Olympic Games. To calculate the budget, the Brazilian candidacy adopted the parity of
US$ 1 equals R$ 2.
The study shows that the injection of the referred US$ 14.4
billion (or US$ 12 billion in 2008 values) in
the Olympic Games will generate an output multiplier
of 4.26, which will provide a drive to the Brazilian
economy of US$ 51.1 billion (R$ 102.2 billion in
2008 values) from 2009 to 2027.
That means that for every dollar invested in the
Games, the
private initiative would inject another US$ 3.26 in
supply chains associated with the event.
From 2009 to 2016, the impact in Brazil's production
(gross production value) is estimated in
US$ 24.6 billion (R$ 49.2 billion). From
2017 to 2027, the impact will be
US$ 26.5 billion (R$ 53 billion), taking into
account the planned investments of US$ 14.4 billion
and the rate of two Reals per US Dollar.
Sectors - 55 economic sectors will benefit
the most from the completion of the mega event,
being the leaders
sectors the following ones: construction (10.5%),
real estate and rent (6.3%), services provided to
companies (5.7%), oil and gas (5.1%), information
services (5%) and transportation, storage and
mailing (4.8%).
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