31.07.2024. / 15:37
PARIS – The Olympic Games (OI) in Paris will increase France’s gross domestic product (GDP) by more than 10 billion euros or 0.4 percent, according to research data conducted by the German multinational company Allianz. Inflation could rise by 0.1 percentage point.
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They point out that the number of tourists in France in 2024 will be six percent or 5.4 million higher than last year, totaling 95.2 million. They estimate that around 1.8 billion euros will be collected for the French GDP from tourism alone.
However, most of those tourists would probably come even without the Olympics because the number of tourists increases every year, so they say that around 1.5 million will come just for the Olympics. The total number of tourists who will visit Paris should be around 15.3 million.
Statisticians state that the Olympic Games usually do not have a large positive impact on the economy of the host countries due to the costs associated with them, especially in the post-pandemic period and the war in Ukraine. But they are used to improve the image of the host country in the world.
Allianz estimates that a total of 11.8 billion euros will be set aside, or has already been set aside, for the organization of the games and insurance. However, cost figures can never be completely accurate as infrastructure spending is often overstated.
“All in all, we estimate an increase in GDP of 8.3 billion euros from the consumption channel”says the announcement of Allianz.
French public expenditures will amount to around five billion euros. At the same time, increased economic activity should support tax revenues in the amount of 5.4 billion euros.
Therefore, the balance between income and expenditure will be slightly positive at around 400 million euros.
“In my opinion, the games should remind us that we are stronger together. Simply put – we should trade, not war”said Ludovic Subran, Chief Economist of Allianz.
Source: www.capital.ba
