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An economic impact study by Center for Law and Economics of Sport (CDES) in May, estimated the Olympics would generate an economic gain of 6.7-11.1 billion euros read more
 "French economy projected to grow by 0.3 percentage points this quarter due to Games")
More than 10,000 athletes will participate in the Paris Olympics with 329 gold medals at stake from 32 sporting events. AP
France’s economy will get a boost from the Paris Olympics this quarter, with economic growth set to increase by 0.3 percentage points thanks to the sporting extravaganza, state statistics body Insee said on Tuesday.
The expansion in the July-September quarter would be mostly down to “a rise in tourism” as well as sales of tickets and broadcasting rights which have been logged as activity in the period, the agency said in a report entitled “GDP, the Games, Unknowns”.
The Olympics will reduce growth by 0.1 percentage points of Gross Domestic Product (GDP) in the final quarter of the year as some one-time effects linked to the games are unwound, Insee added, saying it had based its assumptions on observed effects in London during and after the 2012 Games.
The British economy gained 0.2-0.3 percentage points of growth in the third quarter of 2012, according to estimates cited by Insee, with overall expansion clocked at 1.0 percent in the period.
“London and Paris are two European capitals with major developed economies, significant tourist sectors, and established urban infrastructure,” the agency said.
“Comparisons with previous editions (of the Olympics) in Rio de Janeiro in 2016 and Tokyo in 2021 (during the Covid pandemic) appear less relevant,” it added.
The French economy as a whole is set to expand by 0.5 percent in the third quarter and by 1.1 percent over 2024, the report added, while noting the political limbo caused by inconclusive parliamentary elections on Sunday.
The composition and political programme of the next government is still unknown, with the National Assembly split into three groups – leftist, centrist and far-right – with none of them commanding a majority.
The growth forecast “of course contains a major hazard which is the political situation in France,” chief forecaster Dorian Roucher said during a press conference.
Paris avoidance
Measuring the economic gains attributable to so-called “mega-events” such as the football World Cup and the Olympics is notoriously difficult.
The construction work that proceeds each Games helps to boost jobs and growth in the run-up, while extra foreign visitors and other commercial activity such as ticket sales and food and beverage consumption also help create wealth.
In some instances, however, the Olympics can suppress tourist activity, with high hotel and flight prices deterring some visitors, and consumer spending can be affected if people stay at home to watch sport in large numbers.
Many hotel chains and others involved in the Paris tourism sector have complained in recent weeks that visitor numbers are down in the French capital as regular foreign travellers stay away – with the Olympics effect compounded by bad weather.
France’s top airline Air France-KLM warned at the beginning of July that the Olympics would lead to a drop in revenues of up to 180 million euros ($193 million), saying there was “significant avoidance of Paris” internationally.
A separate recent forecast for the French economy by the independent French Economic Observatory foresaw a “slight rise in growth” in the third quarter linked to the Olympic, with overall expansion at 0.3 percent – below the 0.5 percent seen by Insee.
An economic impact study by the France-based Center for Law and Economics of Sport (CDES) in May, which was commissioned by the organising committee, estimated the Games would generate an economic gain of 6.7-11.1 billion euros (7.2-11.9 billion dollars) for the capital region.
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English (US) ·