In 2016, the Summer Olympic games was held in Rio, which was the first South American city to be a host (Dale,2016). When Rio was chosen by the International Olympic Committee (IOC), it was experiencing a period in which their economy was increasing (McBrid, 2016). In 2013, Brazil’s poverty rate dropped from 25 percent to 9 percent (Nelson, 2016). In 2009, the inflation rate was lower than the banks predicted, so the Brazilian stock market had the highest value in the world (Dale, 2016). Also, the unemployment rate was decreasing (McBrid, 2016; Nelson, 2016). By the time the games were to be held, the economy was going down (McBrid, 2016), and despite popular belief, hosting the Olympic games might have a negative impact on a nation’s economy.
Brazil’s lack of the budget resulted in the government being unable to allocate sufficient amount of money to the areas that needed investment. The cleaning pollution project illustrated that the Rio government was running behind on preparing for the games (Nelson, 2016). At the beginning, it was planned to spend 4 billion dollars on this …show more content…
According to Dale (2016) Stock market returns for the host country post strong growth after the games (with the exception of Sydney 2000), so much that they tend to outperform the global benchmark. From the previous record, the host nation will have a large economic increased because the host nation could abstract a number of investments from all over the world, which could help the economy of the host nation. He wrote in a recent report that the average gain was 24.4% master stock market (20% in dollar terms), compared to the MSCI World Index by 9.2% (Dale, 2016). Normally, the host country would not earn any money, it could only gain some profit from the stock market after the games. Another perceived benefit, the money that the government used could create
Brazil’s lack of the budget resulted in the government being unable to allocate sufficient amount of money to the areas that needed investment. The cleaning pollution project illustrated that the Rio government was running behind on preparing for the games (Nelson, 2016). At the beginning, it was planned to spend 4 billion dollars on this …show more content…
According to Dale (2016) Stock market returns for the host country post strong growth after the games (with the exception of Sydney 2000), so much that they tend to outperform the global benchmark. From the previous record, the host nation will have a large economic increased because the host nation could abstract a number of investments from all over the world, which could help the economy of the host nation. He wrote in a recent report that the average gain was 24.4% master stock market (20% in dollar terms), compared to the MSCI World Index by 9.2% (Dale, 2016). Normally, the host country would not earn any money, it could only gain some profit from the stock market after the games. Another perceived benefit, the money that the government used could create