Rio de Janeiro opened South America's first-ever Olympic Games on Friday with a pared-down ceremony that put the environment to the forefront and celebrated Brazil's rich and diverse culture.

Hampered by budget cuts enforced by an economic crisis gripping the world's fifth-biggest country, Rio eschewed the high-end production of previous opening ceremonies yet still managed to delight a packed crowd of 78,000 at Maracana Stadium with a carnival of lights, music and dancing.

"With the Olympic Games as a catalyst, you have achieved in just seven years what generations before you could only dream of," said International Olympic Committee president Thomas Bach. "You have transformed the wonderful city of Rio de Janeiro into a modern metropolis and made it even more beautiful."