Brazil's Economy So Bad Olympic Athletes Will Have to Pay for Own AC
Brazil is experiencing the country's worst economic crisis since the Great Depression.
The Wall Street Journal reports Brazil’s gross domestic product shrank 4.5 percent in the third quarter. According to Brazil’s statistics agency, the new figures reveal the largest contraction since Brazil started measuring GDP by the current system in 1996.
André Perfeito, the chief economist at Gradual Investimentos in São Paulo, likened the report to an obituary.
“There were no positive signals in this for the Brazilian economy in the next few quarters, and we still can’t say we’ve hit bottom,” Perfeito said.
As previously reported, impeachment proceedings against President Rousseff have begun over her alleged illegal handling of last year’s budget.
Inflation in Brazil is at 14.25 percent and unemployment is at 7.9 percent.
Luciano Rostagno, an economist at Votorantim Brokerage in São Paulo, said that Brazil’s current economic contraction could be the longest and deepest one since the 1930s.
“It’s just decline after decline in investment,” Rostagno said. “That reflects the high level of pessimism about the economy in every sector.”
Brazil, with all its economic woes, is set to host the 2016 Summer Olympic Games.
As Bloomberg reports, the nation’s financial struggles will be felt by the athletes and audiences alike.
Participating athletes will be asked to pay for their own air conditioning in their dorm rooms, and stadium backdrops will be stripped to just the bare essentials.
Mario Andrada, a spokesman for the organizers in Rio de Janeiro, addressed the reasoning behind the austere Olympic conditions.
"The goal here is to organize games without public funding and to organize games that make sense from an economic point of view," he said.
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