What will be the impact of the World Cup on the Russian economy | Business | Economic and financial news from a German point of view | DW
Russia will host the world’s largest soccer tournament from June 14 to July 15 in 11 cities in the European part of the country, after spending billions of dollars to put in place the right infrastructure.
The rating agency Moody’s warned Thursday that it sees “a very limited economic impact at the national level, given the limited duration of the World Cup and the very large size of the Russian economy.”
“While the further increase in tourism will benefit Russia’s already healthy external accounts, the additional support will likely be short-lived.”
Moody’s said the food, hospitality, telecommunications and transportation sectors would see a temporary increase in their revenues, adding that Moscow airports would also benefit because “the upgraded facilities will support higher passenger flows. even after the event “.
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The rating agency’s assessment is in many ways at odds with a Russian government investigation last week. He said the World Cup boost to the country’s gross domestic product (GDP) would be between $ 26 billion (22 billion euros) and $ 30.8 billion over the 10 years of 2013. to 2023.
The numbers were based on expected revenues from tourism growth, large-scale construction activity, and the subsequent ripple effects of a series of government investments.
The survey indicated that the total spending for the tournament would be $ 11 billion, not counting expensive new infrastructure and stadiums that would have been built anyway. About 220,000 jobs have been created, according to the report.
hg / jd (Reuters, AP)