Rio 2016 will generate a positive socio-economic impact in Brazil
Study by the University Of São Paulo Institute of Administration, points to the expansion of industry and services, increased tax revenues, income generation and job creation
Holding the 2016 Olympic and Paralympic Games in Rio will bring significant benefits not only for the citys economy, but also for the state and country, according to a study by the Institute of Administration (FIA) at the University of São Paulo (USP), commissioned by the Ministry of Sport. The effects before, during and after the Games include increased production, expansion of the service sector, more tax revenue and growth in jobs and wages. According to the study, the expected impact of the Games in the Brazilian economy could reach R$ 102 billion.
The survey calculates that for every US$ 1 invested US $ 3.26 would be generated by 2027. The study also estimates that by 2016 120,000 jobs per year will be created, this figure rises to 130,000 for each of the next ten years. 55 different sectors of the economy stand to benefit from hosting the mega event. From a national perspective they are: construction (10.5%), real estate and rent (6.3%), business services (5.7%), oil and gas (5.1%), information services (5.0%), and transport, storage and mail (4.8%).
The FIA study also concludes that, based on investment forecasts, adding together values of the increased revenues for municipal, state and federal taxes, accounts for 40% of public spending, estimated at US $ 23 billion, to host the Games.
For Rio 2016 Bid Committee president, Carlos Arthur Nuzman, the results of the FIA study reinforce the power of transformation the Olympic Games and Paralympic Games will have on host city and country. "This is proof of how an event of this magnitude can bring benefits to the entire population. We are certain that the Rio 2016 project, as well as making a difference to the Olympic Movement will also positively influence the socio-economic trajectory of Brazil," said Nuzman.
The survey calculates that for every US$ 1 invested US $ 3.26 would be generated by 2027. The study also estimates that by 2016 120,000 jobs per year will be created, this figure rises to 130,000 for each of the next ten years. 55 different sectors of the economy stand to benefit from hosting the mega event. From a national perspective they are: construction (10.5%), real estate and rent (6.3%), business services (5.7%), oil and gas (5.1%), information services (5.0%), and transport, storage and mail (4.8%).
The FIA study also concludes that, based on investment forecasts, adding together values of the increased revenues for municipal, state and federal taxes, accounts for 40% of public spending, estimated at US $ 23 billion, to host the Games.
For Rio 2016 Bid Committee president, Carlos Arthur Nuzman, the results of the FIA study reinforce the power of transformation the Olympic Games and Paralympic Games will have on host city and country. "This is proof of how an event of this magnitude can bring benefits to the entire population. We are certain that the Rio 2016 project, as well as making a difference to the Olympic Movement will also positively influence the socio-economic trajectory of Brazil," said Nuzman.
