Will Euro 2020 and the Tokyo Olympics Boost Economic Growth?
INTERNATIONAL POLICY DIGEST
During the run-up to last week’s Euro 2020 final, Rishi Sunak, the British finance minister, suggested that an England victory could be a boost for the country. Not only would it generate a feel-good mood, but it could have tangible outcomes in the form of greater consumer spending and an overall improvement in the nation’s finances.
Meanwhile, Tokyo’s postponed Olympics Games will start on July 23. But in contrast to Sunak’s optimistic note, there is a general expectation that Japan will fail to recoup the costs of the Games, owing to the absence of spectators and tourists. The gloomy prognosis comes after a year where there were hopes that the Olympics might help kickstart Japan’s economic recovery, especially after the hit it took because of the pandemic.
Claims about positive outcomes have long been made about sporting events. Sunak’s suggestion is the latest in a long line that includes those about England’s sole World Cup win in 1966 having helped the Labour Party win re-election that same year. But there’s a problem with this: England beat Germany on a hot summer day at the end of July whereas the 1966 election took place several months earlier, in March.
Four years later, Brazil won the World Cup with arguably the best team of all time. Their success coincided with the so-called “economic miracle” that swept the country during the late 1960s and early 1970s.
