A study by Fundação Getulio Vargas titled Legacy of the Rio 2016 Olympic Games: Economic Impacts, published on Tuesday, July 23, reveals that the projects made possible by the Games have been significant drivers of economic activity, boosting the municipality of Rio de Janeiro’s gross output by R$99 billion to date. The Games also increased the municipality’s net output by R$51.2 billion, expanded its tax revenue by R$5.3 billion, increased family incomes by R$36.2 billion and created more than 465,400 jobs.

Of the total economic impacts, most were generated during the Olympic period: R$88 billion of extra gross output, a R$45.5 billion boost to net output, R$4.7 billion of additional tax revenue, a R$32.2 billion increase in household income, and around 414,000 new jobs. The other economic impacts were generated by the projects that were still in progress or expanded after the Games. They created an extra R$11 billion of gross output, R$5.7 billion of net output, R$590 million of tax revenue and 51,400 new jobs.

The study concluded that “public and private sector projects had economic effects that went beyond their initial objectives,” affecting regions, sectors and agents that, at first glance, were not the target of the planned policies and investments. It was observed that the execution of the initiatives generated a series of socioeconomic benefits for the population, including more public services, new jobs and higher family income. All this translated into an increase in the consumption potential and well-being of Rio’s residents.

Eight years on from the event, it can be said that the municipal government of Rio de Janeiro delivered one of the most efficient Olympic Games in history in terms of the rational use of public money.

According to the study, the Games were also very positive for businesses, as there was a considerable increase in demand for various goods and services, which benefited local economic activity as a whole. It’s worth noting that most of the resources mobilized for Games-related investment came from the private sector, especially from public-private partnerships and concessions.

The researchers also found that the impacts were not restricted to the municipality of Rio de Janeiro, and they significantly benefited the entire population of Rio de Janeiro State. Looking at the whole state, gross output increased R$134.7 billion, net output rose R$69.6 billion, tax revenue went up R$7.25 billion, household income swelled by R$49.2 billion, and more than 633,200 jobs were created.

The study was the first to quantify the economic impacts of the Games from a broader perspective. It looked at projects closely linked to the event and also other ones made possible by it. Thus, it considered two groups of investments: legacies completed for the 2016 Games and legacies in progress or undergoing expansion, especially urban infrastructure, even if completed after the event. The latter group also included projects that were planned in the context of the Olympics but halted due to temporary circumstances and then resumed. The researchers examined the effects of public and private sector investments, including the results of continued operations. 

Completed legacies versus legacies in progress or undergoing expansion

The Olympic Games left a legacy for the city in terms of infrastructure, services, transportation, the environment, education and sports. The study took into account projects completed by 2016 and other ones that were expanded and/or resumed after the Olympics.

The first group included the first phase of the “Porto Maravilha” infrastructure program in Rio’s downtown port district, encompassing the demolition of the Perimetral overhead highway, the creation of new tunnels in the area, the creation of the Olympic Boulevard and the construction of Rio Art Museum and the Museum of Tomorrow, as well as mobility projects such as the Transoeste, Transcarioca and Transolímpica bus rapid transit lines, the downtown light rail scheme and Line 4 of the city’s subway system. The second group included the reuse of Olympic facilities. One example is the Future Arena, which was converted into four schools. Likewise, Arena 3 was transformed into the Isabel Salgado Olympic Educational Gymnasium, and Via Olímpica was turned into Rita Lee Park.

About the study

Led by economists Daniel da Mata and Joelson Oliveira Sampaio of FGV’s São Paulo Sao Paulo School of Economics (FGV EESP), as well as Bruno Rodas Borges Gomes de Oliveira of FGV Knowledge, the study included thematic analyses by specialists, some of whom played a strategic role in the planning and management of the Games. This is the case with Maria Silvia Bastos Marques, then president of the Olympic Company; General Fernando Azevedo e Silva, president of the Olympic Public Authority at the time; and Rafael Lisbôa Salgado Pinha, responsible for the city’s communication strategy for the major international events held during the period, particularly the 2014 World Cup and the 2016 Olympic and Paralympic Games. Ilan Cuperstein, regional director for Latin America at C40 Cities, and researchers Alessandra Baiocchi and Leila Toledo Martinho also contributed to the study.