Friday, March 24, 2006

Totti's Team Tipped for Title

A win for the Azzurri will benefit us all?

Some Dutch researchers have predicted a world economic benefit from an Italian win at the World Cup.
The world economy will benefit most from an Italian victory at the football World Cup in June/July, according to ABN AMRO's economists in their 'Soccernomics 2006' study, which they have prepared – both for education and enjoyment – for the third time.


With the World Cup in Germany only three months away, the ABN AMRO Economics Department has made a prediction, as it did in the run-up to previous major football competitions, as to which country would benefit the global economy the most if its team were to win the World Cup. This time it is Italy.


Although the direct economic impact (higher sales in bars and cafes) is marginal, good performances on the pitch can certainly stimulate an economy. In the past, countries winning the World Cup added around 0.7% to their economic growth. And at the last three tournaments the winning country's stock market considerably outperformed the losing finalist's market. On average there was 10% positive effect in the winner and a 25% negative effect in the loser.

The 'economic final' in soccernomics should therefore be between Germany and Italy, with Italy lifting the World Cup.

No comments: