RIO DE JANEIRO: The Rio Olympics in August will give Brazil's battered economy only a limited shot in the arm, Moody's ratings agency said Monday, as bad news mounted for the city's Olympic transportation network.
"Rio de Janeiro's upcoming summer Olympic games will give the city some lasting infrastructure improvements, as well as a temporary boost in tax revenues, but once the events are over, the country will wake up once again to its deepening recession," Moody's Investors Service said in a report.
Spending $7.1 billion on infrastructure around Rio will equal all spending for 12 cities during Brazil's hosting of the 2014 World Cup, the report added. With Brazil set to remain in deep recession throughout this year, however, the Games will not change the underlying weaknesses, Moody's said.
One of the biggest injections into the economy -- construction spending -- is already almost over, the report noted.
Sectors set to get a big lift from the 350,000 tourists and 10,000 athletes the government expects in August include broadcasters such as Globo, which will broadcast all events, and card payment processors like Brazil's Cielo.
Car rental companies will be another big winner, especially the official Games company, Localiza Rent a Car, Moody's said.
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