The fireworks have stopped, the green pool has been covered
and the last race has been run. The Rio 2016 put on a grand spectacle enjoyed
across the globe, but now, even with the ongoing Paralympics, Brazil has been
forced to snap back into reality. They are now in the midst of an economic
crisis that has plunged them into recession.
Brazil is a country that has found itself in the middle of
both economic and political crisis, due to President Dilma Rousseff’s
impeachment trial. Following the expenditure of the Olympics, Brazil faces an
uphill battle to resurrect its stumbling economy- with the Olympic Games itself
providing almost nothing in the way of a boost. Their tourism industry has
actually shrunk this year, with visitor numbers dropping by 1.65% when compared
to last year’s figures.
Despite the Brazilian government’s extravagant promise that
the Olympics would provide an enormous economic boost, the country now finds
itself in a position where it’s in a recession worse than any other in the last
100 years. Brazil’s unemployment rate is now running into double digits, after
being just 6% after it had hosted the FIFA World Cup in 2014.
Brazil is facing a deep recession, with the economy
remaining depressed for the remainder of the year. GDP is expected to be
running at -3.0%, in comparison to the -3.8% of 2015. Annual inflation is
nearly double the target set by Brazil’s Central Bank of 4.5%, and this is
making it more difficult for Brazil to cut its interest rates- meaning that
they have been unable to revive the economy.
The Brazilian recession is well into its third year, and the
total bill for the Olympic Games remains uncertain. However, experts are
estimating the figure to be something around $13billion USD. In addition to
this whopping figure, the Brazilian government also authorised an $850 million
loan for Rio to help pay for the Olympic security and infrastructure.
Brazil’s economy doesn’t appear to be recovering any time
soon, and if you are looking to outsource your international debt recovery to a
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