With England exceeding expectations in the FIFA World Cup, Dr Christopher Doyle, expert on the economics of professional sports, sheds light on how the tournament is impacting the economy.
“In respect of the economic impact of the World Cup - there are two issues to consider. First, the success of England clearly causes higher demand for consumables such as alcohol, takeaways, etc. There may also be a rise in demand for flat screen TVs and low value bunting, flags, etc. Much of this expenditure will be substituting away from other expenditures that might otherwise have occurred in the short to medium term. Consequently this will not affect the economy much.
“The second issue relates to the intangible feel good factor. If workers are happier as a result of England’s performance, this might lead to enhanced productivity - offset by the short run effect of higher absenteeism due to the World Cup. In short, there will not be much if any durable impact on the wider economy - evidenced by other nation’s growth in GDP and success in the World Cup”.
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