Spain hope for economic boost from WC glory
Saturday, 10 July 2010
MADRID, July 9 (AFP): Spain's glorious run to its first World Cup final has bolstered a sagging feel-good factor in a country that has endured some difficult economic times of late.
Economists now hope a win over Holland Sunday can aid growth and lift the country out of the doldrums.
A win "could help consumer spending" but it would be "cyclical, a one-off," according to Josep-Maria Sayeras, economist with Esade business school.
Carlos Martinez Lazaro, economist with IE Business School, believes benefits could from Spain's strong showing at the tournament even in the event of a defeat by the Dutch.
"Certain sectors of activity could benefit from the Spanish performances, such as hotelry (including bars) and commerce. More alcohol is being sold," he explains.
"Although we do not have concrete figures we are expecting a rise in consumer spending ... (including) on beer, given that football matches boost the number of people frequenting bars," the director general of Spain's brewers' association, Jacobo Olalla Maranon told the news agency.
Not only that, but the Puente Robles firm which produces Iberian delicatessen items including a range of Spanish hams estimates demand has risen 64 percent in recent weeks as the Spaniards have steadily advanced at the World Cup.
Spain is certainly looking for a boost from somewhere, with the country struggling to pull out of a recession rooted in the 2008 implosion of a property bubble and an ensuing global credit crunch.
Public sector deficits have mushroomed to hit 11.2 percent of GDP while unemployment has rocketed to around 20 percent of the active population, damaging Spain's image within the eurozone.
Martinez Lazaro says while the World Cup per se might not have a "great impact" he believes it could go some way to restoring Spain's image.
Economists now hope a win over Holland Sunday can aid growth and lift the country out of the doldrums.
A win "could help consumer spending" but it would be "cyclical, a one-off," according to Josep-Maria Sayeras, economist with Esade business school.
Carlos Martinez Lazaro, economist with IE Business School, believes benefits could from Spain's strong showing at the tournament even in the event of a defeat by the Dutch.
"Certain sectors of activity could benefit from the Spanish performances, such as hotelry (including bars) and commerce. More alcohol is being sold," he explains.
"Although we do not have concrete figures we are expecting a rise in consumer spending ... (including) on beer, given that football matches boost the number of people frequenting bars," the director general of Spain's brewers' association, Jacobo Olalla Maranon told the news agency.
Not only that, but the Puente Robles firm which produces Iberian delicatessen items including a range of Spanish hams estimates demand has risen 64 percent in recent weeks as the Spaniards have steadily advanced at the World Cup.
Spain is certainly looking for a boost from somewhere, with the country struggling to pull out of a recession rooted in the 2008 implosion of a property bubble and an ensuing global credit crunch.
Public sector deficits have mushroomed to hit 11.2 percent of GDP while unemployment has rocketed to around 20 percent of the active population, damaging Spain's image within the eurozone.
Martinez Lazaro says while the World Cup per se might not have a "great impact" he believes it could go some way to restoring Spain's image.