The cancellation of the Tokyo Olympics will slow the growth of Japan’s economy in 2021 by 1.7%, according to a Bloomberg study.
“The cancellation of the Olympics will further worsen the situation with the coronavirus and have a serious impact on the economy,” said company spokesman Yuki Masujima.
“We should not speculate about whether the Games will take place or not based on their economic impact. If the tournament can be held without any problems for the health system, then it should be held. If you can’t, then you shouldn’t, ”said Toshihiro Nagahama, chief economist at the Dai-iti Research Institute.
Japan will lose $ 13 billion if the Games are canceled, according to Nagahama. This is 4 billion less than the Nomura Institute’s estimate.
“The economic benefit from the event itself is not so great at this stage. If the Games increase the risk of infection, it will be extremely detrimental to the economy, ”said Takahide Kiuchi, an economist at the institute.
Cancellation of the Olympic Games will cost Japan up to 0.2% of GDP, according to a study by Barclays Bank, but this measure will help prevent the fifth wave of coronavirus, which threatens to weaken domestic demand. The drivers of growth in the second half of the year will not be the Games, but the growth of exports and the recovery in consumer demand due to vaccinations.
“The focus of consumers is on the progress of the vaccination campaign rather than the Olympics. I think this is more important, ”Business Standard quotes bank economist Kazuma Maedu.
The Olympic Games in Tokyo will be held from July 23 to August 8.
The Tokyo Olympics are always a bad idea: some Games broke down due to the war, others harmed the environment, others are drowning in covid hysteria