Summer Olympics Boost Unlikely to Solve Brazil’s Deepening Economic Issues

According to Moody's, the upcoming summer Olympics will give Rio de Janeiro an economic boost, however will not solve the country’s deepening economic slump.

WASHINGTON (Sputnik) — The upcoming summer Olympics will give the Brazilian city of Rio de Janeiro an economic boost and some infrastructure improvements but will not solve the country’s deepening economic slump, Moody’s Investors Service said in a report released on Monday.

The Brazilian government expects about 350,000 people to visit Rio de Janeiro during the Summer Olympic Games in August.

"The overall impact of the games will be minimal for most corporates, consisting of short-lived sales increases and the intangible benefits of marketing exposure at the games," the report stated.

Moody’s explained that any economic benefit for Brazil’s engineering and construction companies is likely already over as most of the Olympic construction projects have been completed.

Furthermore, loans made by local banks to finance the Olympic projects "amount to only a small fraction of their outstanding loans," the report noted.

The opening ceremony of the 2016 Summer Olympic Games is scheduled to take place on August 5, and a number of world leaders are expected to attend the event.