Economy

How an out-of-season World Cup will impact the Brazilian economy

The football World Cup always provides a boost to various economic sectors. With the tournament held in Qatar on a different calendar this year, amid a financial squeeze for many Brazilian families, its impacts on the Brazilian economy may be different from previous years

world cup football economy
Photo: Cintia Erdens Paiva/Shutterstock

Saying that the World Cup deeply alters Brazilians’ daily routine is one of those worn-out clichés that are, in fact, true. The Brazilian government and the Supreme Court, for example, have announced special working hours for matchdays of the national team. Furthermore, the event also boosts economic sectors such as retail and dining.

This year, however, the timing of the World Cup may alter exactly how the tournament affects the Brazilian economy. 

Far from the usual months of June and July, the cup comes squeezed between Black Friday (November 25, one day after the Brazil’s debut against Serbia in Qatar) and Christmas — two dates that already drive retail sales peaks.

Speaking to The Brazilian Report, Merula Borges, a finance specialist at the National Confederation of Shopkeepers (CNDL), is bullish. She says that “the World Cup is coming to boost Black Friday sales,” and even purchases related to Christmas, depending on the Brazilian national team’s performance.

“If the Brazilian team does well, people will end up consuming more items related to the World Cup and for longer,” she says. 

However, other experts believe that this overlapping of consumer events, in addition to increasing the complexity of supply, demand, and logistics forecasts for retailers, may also end up restricting purchase opportunities and limiting impulse spending — especially when taking into account the unfavorable financial situation of many Brazilian families.

According to estimates by the National Confederation of Commerce (CNC), sales related to the World Cup should bring BRL 1.4 billion (USD 263.1 million) in revenue for Brazilian retailers. These sales will be driven mainly by furniture, home appliances, and personal and electronics items, which are expected...

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