Welcome back to the Market Sneak Peek of the Week series. We have got to say that recent days have been booming with several interesting events.
Undoubtedly the most important event is a start of the Rio 2016 Olympic Games. Every four years the world counts down to opening another Olympic Games. This one is historic, the first event is taking place in South America, in the land of samba and coffee – beautiful Brazilian Rio De Janeiro. There were many voices of doubt in response to choosing Rio as the place to go. People were concerned about the safety in the city where it is easier to get shot than finding a stable job. Additionally, The South America has been fighting with a spread of the Zika Virus. Happily, so far so good, the Rio Games haven’t been interrupted by any dangerous happenings. What is more, the Brazilians did a great job in organizing the latest FIFA World Cup. What matters is the sport and the rivalry between the countries. If you are looking for a great Rio2016 coverage, there is a special site on the Bloomberg summarising up the daily competition. The website is full of economic indicators that compare the nations. No surprise, the Americans have been dominant so far. The biggest surprise is Hungary and their 3 gold medals. Good luck to everyone!
From the economic point of view the decision of holding the Olympic Games in Brazil might be a spot on. Brazil has recently become a 7th biggest economy in the world, only behind the powerhouses like the USA, China, Japan, France, Germany and the UK. The South-American country has a population of 205 million and area of more than 8.5 million square kilometers. Easily being the biggest and most populous land in the South America. The country is also a member of an economic pact BRIC(what stands for Brazil, Russia, India and China – several of the emerging economies).
Brazil has 19 companies in the Fortune 2000 ranking (2 thousand of the biggest firms in the world). The largest is Petrobras, a petrochemical and oil company. Other wide-known entrepreneurships among the list are Embraer (aircraft productions) Banco Bradesco and Banco De Brasil (both banking).
Rio itself has emerged its position as the biggest local financial capital. The city possesses a robust and highly diversified economy, providing large-scale employment in heavy and light industry, manufacturing, commerce, finance, trade, and other service sectors. At the moment Rio De Janeiro stands for about 10% of Brazil’s total GDP. Rio is the hometown for Petrobras.
We should not forget that Rio is also an important tourist destination. We all have seen a giant Jesus Statue mounting over the top of the city or a vivid Carnival time in January. The statue has also become a cultural icon of both Rio de Janeiro and Brazil and is listed as one of the New Seven Wonders of the World. The city is visited by 3 million of tourists each year, early predictions state that the number may double during the Olympic Games.
Being an Olympics host has always been a great chance for countries to improve their economy and make a huge advertisement. Unfortunately, not all that glitters is gold. Some of the Olympic Games organizers did not make any good of the opportunity. Athens and Greece are a great example of an event that consumed too much of capital for that small country. A couple years after the Games, most of the venues must have been dismantled. On the other side, there is Atlanta and turning the event to good account. A fairly big city, despite being home to Coca-Cola, CNN and Atlanta Hawks, had not been widely known in the world. The race is on. “We are all witnesses”