Impact of 2012 Olympics on the UK Economy
Until sixteenth July 2012, there are just 11 days left to get the Olympics games held in London, on 27th September 2012. Beside the games, people also give attention to how this momentous celebration will impact the UK's economy as UK's economy is currently suffering from the recession. Will the games catch the attention of world attention as well as huge economical benefits to UK? The objective of this kind of essay should be to investigate the economic impact of the London 2012 Olympics on the UK economy in short-term and long-term. Because of the limitation details, the dissertation will give full attention to aspects of the economic impact where many data are available such as the GDP growth and consumer spending. The impact throughout some essential sectors just like construction, labour market and tourism will also be analysed. To be evaluated in greater detail, the impacts on corporations in different sectors will be resolved through an evaluation of currency markets announcements in 2012.
The budget intended for the London 2012 Olympics is continually increasing seeing that Britain won the bid in July 2006. The original expected cost was ВЈ2. thirty seven billion; by the time in 08 it was brought up to ВЈ9. 35 billion dollars, and with ВЈ6 billion dollars is approaching directly from the us government. As UK is underneath an increasing pressure of the economic downturn in the economy, this kind of level of open public funding has become criticised by the press. Nevertheless on the other side, while Ms Jowell, the minister for the Olympics and Paymaster Basic claimed, the Government's spending could be noticed to stimulate the economy and generate jobs for residents. (The telegraph, 12 Nov 2008)
The entire economic impact of the Games on the UK
The Gross Domestic Product (GDP) is the most important way of measuring economic activity in a country. Several forecasts on the UK GDP expansion due to the 2012 Olympic Games have been made by different organisations. The official forecast from the Office of Budget Responsibility is that the UK economy is going to grow by simply 0. 7% in 2012. Within that, our economy is sure to grow by 0. 1% through the ВЈ300 million seat tickets sales. (The telegraph, 05 Jan 2012) Although intended for the first two quarters' GDP of 2012 which have already posted, showed the growth remains adverse. Many economists such as Shona Dobbie, brain of the financial research centre at Connections Trust, nonetheless hold a positive attitude for the impact. The girl believes that there should be a huge increase in GROSS DOMESTIC PRODUCT in the third quarter that may decisively move the UK out of downturn. This conjecture is also decided by Wayne Carrick, economist at Legal & Standard Investment Management. (Moneywise, goal May 2012) More specifically, The Wall Street traditional bank forecasts that GDP in the third quarter of 2012 will be increased by between 0. 3% and zero. 4% by Olympic spending which will probably help The uk to emerge from the recession. (The telegraph, 12 Jul 2012) In long-term, the UK GDP will probably be contributed directly from the 2012 Games by simply ВЈ16. five billion (2012 prices) spread over 12 years in line with the study from the Lloyds Bank Group, ingesting the period by London's successful bid in 2005, through until 2017 вЂ“ a five yr legacy period. Of this, 70 percent of the contribution is predicted to be made prior to and during the Game titles and the outstanding 30% is definitely expected to happen as its heritage. London because the web host city of the Games will be contributed the majority of above all other areas in UK, with a 41% share from the total GDP supported. Pertaining to other areas such as South East, North Western world and East Midlands, every will only includes a share of no more than 10%. Over all, the whole economic effects of the Games on UK is significant and there is very likely to have a short-term enhance in economic climate during the games are taking place. The impact will likely last for many years as legacy effect.
Structure is a essential sector that is certainly expected to lead largely towards the GDP progress as a result of the 2012 Olympics. With all the GDP that the Online games contributed to, 82% is...
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