UK finance professionals predict World Cup to boost Brazil GDP by just 4% in next 2 years
- Finance professionals predict Brazil’s economy will grow by 4.1% over the next two years – compared to an average of 6.5% among past World Cup hosts
- Central and South American hosts lead the way with average 9.8% GDP gains – making the 1970s a golden age for post-World Cup economic growth
- Current holders Spain the only nation whose victory coincided with a downturn
- Olympics surpass the World Cup in terms of hosts’ subsequent GDP growth
-
1966 World Cup coincided with greater uplift for the UK economy than the 2012 Olympics
Finance professionals predict that this year’s FIFA World Cup in Brazil will boost the host nation’s economy by just 4.1% over the next two years, according to research by accountancy and finance recruiter Marks Sattin. This forecast leaves Brazil languishing outside the top ten in terms of the economic growth enjoyed by World Cup hosts since 1962, when comparable records began.
Marks Sattin’s research shows that World Cup host nations have seen an average GDP uplift of 6.5% in the two years following the event. Central and South American hosts have fared even better with tournaments in Argentina (1978), Mexico (1970 and 1986) and Chile (1962) preceding 9.8% GDP growth on average: more than twice the forecast for Brazil.
The fortunes of Mexico and Argentina made the 1970s a ‘golden age’ for post-World Cup economic growth that has yet to be bettered by subsequent hosts [see table below].
Rank | Host nation | World Cup GDP ($) | 2 year post-WC GDP ($) | % change |
1 | Argentina (1978) | 107,934 | 123,907 | 14.80% |
2 | Mexico (1970) | 247,022 | 277,408 | 12.30% |
3 | Chile (1962) | 20,756 | 22,613 | 8.90% |
4 | Korea (2002) | 755,643 | 812,703 | 7.60% |
5 | France (1998) | 1,842,358 | 1,973,040 | 7.10% |
6 | USA (1994) | 9,102,184 | 9,704,538 | 6.60% |
7 | England (1966) | 840,826 | 894,536 | 6.40% |
8 | South Africa (2010) | 289,661 | 307,312 | 6.10% |
9 | Germany (2006) | 2,868,605 | 2,994,469 | 4.40% |
10 | Japan (2002) | 4,335,932 | 4,513,082 | 4.10% |
11 | Brazil (2014)* | 1,185,944 | 1,234,568 | 4.10% |
12 | West Germany (1974) | 1,505,065 | 1,565,864 | 4.00% |
13 | Spain (1982) | 553,251 | 573,092 | 3.60% |
14 | Mexico (1986) | 499,765 | 515,379 | 3.10% |
15 | Italy (1990) | 1,450,660 | 1,485,266 | 2.40% |
Source: World Bank. GDP data is in constant 2005 U.S. dollars for historic comparison.
*Forecast by accountancy and finance professionals
World Cup victories coincide with greater growth
Brazil is the bookmakers’ favourite to win the 2014 tournament and Marks Sattin’s research shows that past World Cup winners have fared marginally better than the hosts in economic terms: experiencing 6.6% GDP growth on average.
Current holders Spain are the only nation whose victory coincided with a downturn in its economy, while Brazil’s last four victories preceded an average of 10.7% growth.
Rank | Winners | World Cup GDP ($) | 2 year post-WC GDP (4) | % change |
1 | Brazil (1970) | 227,933 | 284,253 | 24.70% |
2 | Argentina (1978) | 107,934 | 123,907 | 14.80% |
3 | France (1998) | 1,842,358 | 1,973,641 | 7.10% |
4 | West Germany (1990) | 2,216,250 | 2,373,999 | 7.10% |
5 | Brazil (2002) | 799,797 | 855,193 | 6.90% |
6 | Brazil (1994) | 666,695 | 711,109 | 6.70% |
7 | England (1966) | 840,826 | 894,536 | 6.40% |
8 | Italy (1982) | 1,158,766 | 1,210,132 | 4.40% |
9 | Brazil (1962) | 145,791 | 152,193 | 4.40% |
10 | West Germany (1974) | 1,505,066 | 1,565,865 | 4.00% |
11 | Italy (2006) | 1,825,554 | 1,834,816 | 0.50% |
12 | Argentina (1986) | 117,556 | 117,884 | 0.30% |
13 | Spain (2010) | 1,179,232 | 1,160,459 | -1.60% |
Source: World Bank. GDP data is in constant 2005 U.S. dollars for historic comparison.
Olympic hosts outdo World Cup counterparts in economic stakes
Marks Sattin’s research suggests Brazil will see greater benefit from Rio’s hosting of the next Olympic Games in 2016 than they will do from this year’s World Cup. Countries hosting the Olympics have typically outperformed their World Cup counterparts and experienced an average of 9.6% GDP growth in the ensuing two years.
This figure is boosted by the exceptional performances of China (2008), Tokyo (1964) and South Korea (1988) – but even discounting these three Asian economies, Olympic hosts have enjoyed an average GDP growth of 6.8%: 0.3% higher than World Cup hosts.
However, the UK economy bucks the overall trend with the 1966 World Cup heralding greater GDP growth (6.4%) than the 2012 London Olympics (5.3%).
Rank | Host (year) | Olympic GDP ($) | 2 year post-Olympic GDP ($) | Change |
1 | Beijing (2008) | 3,183,653 | 3,838,001 | 20.60% |
2 | Tokyo (1964) | 968,011 | 1,133,323 | 17.10% |
3 | Seoul (1988) | 322,610 | 375,897 | 16.50% |
4 | Mexico City (1968) | 224,272 | 247,022 | 10.10% |
5 | Atlanta (1996) | 9,704,538 | 10,591,235 | 9.10% |
6 | Athens (2004) | 234,723 | 253,297 | 7.90% |
7 | Los Angeles (1984) | 6,694,332 | 7,223,186 | 7.90% |
8 | Montreal (1976) | 498,226 | 535,835 | 7.50% |
9 | Sydney (2000) | 590,962 | 625,752 | 5.90% |
10 | Munich (1972) | 1,423,767 | 1,505,604 | 5.70% |
11 | London (2012)* | 2,392,406 | 2,518,080 | 5.30% |
12 | Barcelona (1992) | 756,222 | 766,258 | 1.30% |
Source: World Bank. GDP data is in constant 2005 U.S. dollars for historic comparison. Data for Moscow (1980) unavailable, London post-Olympic GDP based on the latest World Bank forecasts (April 2014).
Dave Way, Managing Director of Marks Sattin said,
“These findings suggest that hosting a major international tournament on the scale of the World Cup is invariably followed by a period of economic growth, heralding business expansion and new job opportunities.
“Accountancy and finance services are a core component of any international business, and the sheer scale of effort needed to capitalise on the worldwide exposure the event brings calls for a high level of technical and managerial skills.
“Brazil has experienced a rockier road than most in the lead-up to the World Cup, which is reflected in this cautious assessment of its growth potential. But with the Olympics on the horizon, it has the opportunity for even greater expansion from the one international sporting event that puts the World Cup in the shade.
“It’s interesting that UK economists have just as much reason as England football fans to hark back to the glory days of 1966. Brazil will be striving to relive the success of its revered 1970 team on the pitch, although few would bet on its chances of matching the economic uplift of 12.3% that Mexico enjoyed after hosting the event that year.”
Data Sources
*Survey among 264 accountants and finance professionals in May 2014
GDP data sourced from World Bank. Data is in constant 2005 U.S. dollars. Dollar figures for GDP are converted from domestic currencies using 2000 official exchange rates.
Signup to receive the latest discipline specific articles
Related jobs
Salary:
Up to €60,000 per annum
Location:
Rotterdam, South Holland
Industry
Energy, Resources and Industrial
Qualification
None specified
Market
Professional Services
Salary
£50,000 - £60,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Als Specialist Financiële Processen SSC binnen een toonaangevende organisatie draag je zorg voor een efficiënte en effectieve afhandeling van financiële administratieve processen.
Reference
BBBH184301
Expiry Date
01/01/01
Author
Aram OutmaijjerAuthor
Aram OutmaijjerSalary:
Up to €84,000 per annum
Location:
Rotterdam, South Holland
Industry
Manufacturing
Qualification
Fully qualified
Market
Professional Services
Salary
£70,000 - £80,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Ben jij een financiële professional met sterke analytische vaardigheden en een strategische visie? Heb je een passie voor procesoptimalisatie en het verbeteren van financiële dienstverlening?
Reference
BBBH184300
Expiry Date
01/01/01
Author
Aram OutmaijjerAuthor
Aram OutmaijjerSalary:
£65,000 - £73,000 per annum + Excellent Benefits Package
Location:
Manchester, Greater Manchester
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£70,000 - £80,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Exciting Group Reporting Finance Manager for a leading retail organisation based in Manchester offering hybrid working paying circa £70,000.
Reference
BBBH184314
Expiry Date
01/01/01
Author
Nathan JonesAuthor
Nathan JonesSalary:
£100,000 - £120,000 per annum + bonus and benefits
Location:
Crawley, West Sussex
Industry
Business Services
Qualification
Fully qualified
Market
Executive Search
Salary
£100,000 - £125,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is working with a rapidly growing PE-backed buy-and-build B2B business
Reference
TA 3428
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£160,000 - £180,000 per annum + Equity, Bonus and Benefits
Location:
North West England
Industry
Education
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is currently working with a PE-Backed Education Business seeking an experienced CFO
Reference
TA 3427
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
Equity, Bonus and Benefits
Location:
London
Industry
Healthcare
Qualification
Fully qualified
Market
Executive Search
Salary
£125,000 - £175,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is partnering with a dynamic, PE-backed Multisite Healthcare Services business to recruit a CFO.
Reference
TA 3426
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
Negotiable
Location:
Horsham, West Sussex
Industry
Technology
Qualification
None specified
Market
Commerce & Industry
Salary
£60,000 - £70,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Our high growth client in the tech/SAAS industry are looking for a new Transactional Finance Manager to join their finance team.
Reference
129384
Expiry Date
01/01/01
Author
Harry LathamAuthor
Harry LathamSalary:
Up to £45,000 per annum
Location:
Leeds, West Yorkshire
Industry
Business Services
Qualification
None specified
Market
Financial Services
Salary
£40,000 - £50,000
Job Discipline
Tax
Contract Type:
Permanent
Description
.
Reference
BBBH184306
Expiry Date
01/01/01
Author
Aleksandra TaranovskajaAuthor
Aleksandra TaranovskajaSalary:
£30,000 - £32,000 per annum
Location:
Leeds, West Yorkshire
Industry
Business Services
Qualification
None specified
Market
Commerce & Industry
Salary
£30,000 - £35,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Credit Controller in Leeds
Reference
BBBH184266
Expiry Date
01/01/01
Author
Cameron WalshAuthor
Cameron WalshSalary:
Up to £36,000 per annum
Location:
City of London, London
Industry
Professional Services
Qualification
None specified
Market
Professional Services
Salary
£35,000 - £40,000
Job Discipline
Software Development
Contract Type:
Permanent
Description
DMS Developer
Reference
BBBH184283
Expiry Date
01/01/01

Author
Shammi Choudhury
Author
Shammi Choudhury