Brazil is pouring approximately $15 billion dollars into the 2014 FIFA World Cup and the 2016 Olympics.
The sporting events are expected to generate a combined 3.6 million temporary and long-term jobs and to boost GDP growth by 0.4% every year through 2019.
But after growing 7.5% in 2010, Brazil’s economy grew just 0.9% in 2012. Q1 wasn’t much better, with GDP rising 0.6% from the previous quarter.
At 6.5%, inflation is high and hurting real wages. Which explains why consumption grew just 0.1% in Q1. Meanwhile, the Bovespa is down nearly 28% year-to-date.
And all this has finally come to a head.