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The World Cup Begins This Sunday, November 20, and Is Promising for the Economy of Minas Gerais (MG), Which Will Be Moved in R$ 141 Million, Occupying 9.5% of the National Retail and Wholesale Share, Only Behind São Paulo (SP), Which Occupies 34.5%.
According to an assessment conducted by KPMG, expectations are that the World Cup will move around R$ 141 million in the economy of Minas Gerais (MG) due to increased sales of spirits, beers, snacks, meats, and even clothing with the Brazilian flag. In addition to thousands of job vacancies.
The state of Minas Gerais will come in second with the largest national share, losing only to São Paulo (SP), which is expected to occupy a share of 34.5%. It is estimated that the economy across Brazil will be moved by more than R$ 1.4 billion!
Due to current inflation, the trend suggests that consumption will be higher for chicken and pork compared to red meats. Despite this, the year 2022 has proven to be quite favorable for the retail sector due to the World Cup and sports, even with a scenario of high interest rates (Selic is in double digits) and the unfavorable exchange rate – encouraging food companies to export to receive in dollars.
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Another aspect that has caused concerns about sector stagnation among businessmen is precisely the accumulated inflation of the last twelve months and the scarce credit from banking institutions, says Fernando Gambôa, partner-leader of Consumer and Retail at KPMG in Brazil and South America.
Increase of the Economy of Minas Gerais (MG) by 12.9% Compared to the World Cup in 2018
The National Confederation of Commerce of Goods, Services and Tourism (CNC) estimates an increase in the economy of Minas Gerais by 12.9% compared to the year 2018, when the last World Cup took place.
Ray Souza, partner of Markets at KPMG in Brazil and Regional Leader in Minas Gerais (MG), argues about a growing recovery of the Brazilian economy after the Covid-19 pandemic, with greater confidence from restaurants and bars in resuming their activities. The population’s expectation of growth at the state level occurs spontaneously with the arrival of the games.
Other surveys show a good performance for November, such as the “Retail Trade Opinion – World Cup 2022” from Fecomércio MG. The data indicated that at least 43% of all companies surveyed in Minas Gerais (MG) about the impacts of the World Cup on commerce expect positive returns in revenue.
47% of respondents state that they are also planning for the arrival of Black Friday, which also occurs this month. Private institutions will invest heavily in marketing to increase sales and stand out among so many market competitors.
About KPMG
KPMG is part of a global network of firms present in 154 countries with more than 200,000 professionals, with about 4,000 of them in Brazil alone, distributed across 22 cities, including the Federal District (DF). The company has been in existence for over 100 years, providing trust to the sector.
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