Even if Brazil wins the World Cup, it loses: Bankers

This story is just about Brazil's economy as a major player among emerging markets in the world. The thing is, like Nigeria, to improve the economy, foreign investors have to come in with the funds to invest in the economy. Now, the World Cup has turned the focus of the entire world to Brazil and this has exposed the fact that the government is unable to deliver what the people need for education, for transportation, infrastructure in general. This will make investors a lot less attractive to the country.


Also, like in Nigeria, there is widespread corruption, and inflation is on the rise. In summary, business confidence is very, very low in Brazil. And thanks to the world cup, it's now open for everyone to see.


"There's no upside for this government, even if everything goes well," Drausio Giacomelli, head of emerging markets research at Deutsche Bank, said on Wednesday. "It's not about (if Brazil wins the World Cup), it's about what it exposes: a government that's unable to deliver what they say the people need for education, for transportation, infrastructure in general," he said. "They can give stadiums ... but not what matters."