Amazing facts about the Olympics 2012
Until the Olympic games in London, few days left, and many sports fans are already wondering which of the athletes will win and in what sports will set a new world record. Did not escape Olympic fever and the experts Goldman Sachs, which is already know how many medals will receive a national team. In addition, they calculated the economic cons and pros from the Olympics…
According to the results of the 10 last Competitions the national team of the host country usually wins 54% more medals than in the years when she performs on the road.
So, Chinese athletes have won 100 medals in various samples in Beijing and slightly over 40 at the previous Olympics. The same situation with Australia: in Sydney in 2000, the host country has won nearly 60 medals, and only about 20 medals Australian athletes managed to get on other Games.
In that regard, Goldman Sachs predicts that at the London Olympics, the British athletes will receive 11 more medals than at the competition in Beijing, and, thus, will occupy 3-e a place in the team standings (after Americans and Chinese). The Bank also expects China this summer will receive 18 medals less than at home. By the way, Russia predict a 4th place team and 25 medals.
Also experts estimate the economic effect from the Olympics. According to Goldman Sachs in the city, where the Olympic games, property prices usually go up sharply. This is because in the preparation of the city for competitions of this magnitude dramatically improves its infrastructure, including roads and public transport.
In addition, the contest makes the city more attractive and interesting for tourists all over the world, which is certainly a big plus for local businesses. So, in Los Angeles since the Summer games in 1984, the average price of real estate grew by 25%, and in the neighboring city only 15%. A similar situation was recorded in Atlanta after 1996.
And although the Olympics has no direct impact on the foreign exchange market, it, apparently, helps to strengthen the national currency of the host country. Analyzing the last seven Summer Olympics, experts of Goldman Sachs say that in all States (USA, South Korea, Spain, Greece, China), which hosted the Games, with the exception of Australia, the local currency strengthened significantly and stay at that level for a while.
The impact of the Olympics may be well to notice on the stock exchange immediately after the announcement of its carrying out in the country. The decision of the Olympic Committee typically encourages investors who believe that the preparation for the Games will create a favorable environment for investment capital. A significant jump of the index on the stock market was recorded after the announcement of the Olympics in South Korea, USA and Greece.
However, the Olympic games can not live up to expectations. This applies to Australia, where sports competitions as economists predicted that the Olympics will provide a significant boost to the national economy of the country. In China Olympic investments have exceeded a total of $40 billion over 6.5 years, but the Olympics were held in Beijing in the midst of the global financial crisis that prevents to estimate the net effect on the economy of the PRC.
In addition, the decision of the Chinese authorities to close large plants around the capital before and during the Olympic games to improve the ecology has led to significant financial losses of these enterprises.
The Olympics in London will cost the UK £ 8.5 billion ($13 billion), which is 0.55% of annual GDP, or 1.4% of the revenue of the British government. According to experts, a significant portion of these costs will be returned within some time thanks to the sale of land and buildings.
However, the Olympics has a short term and long term effects.
In the short-term benefits include a sharp increase in sales, temporary employment of a significant number of people, as well as other indirect advantages. Goldman Sachs expects that the Olympics will lead to the growth of the UK economy in the third quarter of 2012, about 0.3 to -0.4%. However, this increase stops in the fourth quarter.
In the long term, the Olympics will help to increase the flow of foreign tourists into the country, and will make London even more attractive for foreign investment.