For Brazil, preparations to host the 2014 Fifa World Cup and the 2016 Olympic Games are offering a light on the horizon as the massive country faces a slowing economy after many years of growth and a natural resources boom.
Investors in the sector have witnessed highs and lows in Brazil’s market, but some still see opportunities for returns in new plans for fiscal stimulus and an enduring domestic demand.
Last year, the Brazilian government launch the first stage of its five-year plan for fiscal measures that aim to inject £32bn into the economy. The policies look to boost the country’s growth levels and attract investment through widespread privatisations, along with incentives for industry and lower energy costs.
Looking ahead to the Fifa World Cup and Olympics, investors are beginning to predict investment potential, with some questioning the long-term impact of these events for the Brazilian economy. Brazil’s domestic strengths will see the country reap the rewards of these events when they happen.