Holly Ellyat – CNBC, 02/11/2013
As raucous Latin American rhythms, colorful processions and street parties go, Brazil’s Carnival is among the best, but Citigroup’s strategy team is questioning whether the party for Brazil’s economy could be over before it’s really begun.
The five days of celebrations began over the weekend against a backdrop of national pride and optimism. The main carnival in Rio de Janeiro contributes $628 million to the country’s economy and has added around 250,000 temporary jobs. The world-famous samba parade of exotically dressed “carnival queens” and bands generated $42.8 million in ticket sales, advertising and TV rights.
But the celebrations come as economic growth slowed to less than one percent in 2012. At the same time, inflation risks are rising and the currency has strengthened – providing warning signs that all is not well for the “BRIC” economy.