Can the Cup jumpstart Germany's economy?

Posted By Carolyn O'Hara Friday, June 9, 2006 - 6:05 PM Share

Berlin Germany may have had two goals up on Costa Rica today, but the country's economic boost from the World Cup may not be so winning. The German Insitute for Economic Research has warned that the tournament probably won't have "any appreciable economic effect" on the country's macro outlook. Sure, 1 million fans are expected to spend about 1.8 billion euros (or about $2.27 billion) during the tournament, but all those football hooligans have convinced other tourists to avoid Germany like the plague.

But there may be a silver lining: a Center for American Progress report finds that though economic growth in World Cup years may be slower than expected for most host countries, the two years following the tournament are usually good years for growth. Nine of the last 13 hosts have had bumper years following World Cups.

But let's be honest. The two industries that are seeing a real bump in Germany right now? Television manufacturers and the sex trade.

EXPLORE:ECONOMICS, GERMANY, SPORTS, WORLD CUP

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