The 1998 World Cup Impacts the French Economy

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In 1998 France was awarded the right to host the world cup, the world’s largest and most important soccer tournament. As the host of the world cup, it naturally helped boost up the economy, by accommodating tourists, creating new jobs, selling merchandise, etc. People tend to spend more on hotels, meals, and of course alcohol.[6] In preparation for the event France spent billions of Euros on infrastructure projects.[7] Many economists believe success in a world cup can boost a country’s economic growth up to 0.7%.[8] However in 1998, according to Dr. Bill Gerrard, a football finance expert at Leeds University Business School, “the French Economy grew by 3.3%”, and a large portion of that was attributed to Frances world cup win.[9]This is explained because after the win France was given a burst of national pride. This was visibly seen as people crowded the streets to celebrate creating a sense of euphoria, although short lived, provided a boost to the economy. This resulted in a rise of 40% in the French stock market, in the first half of 1998.[10] The 1998 world cup also helped unite the French people, who had a problem with racial integration. The problem was mainly between Algerian immigrants and French citizens who for a short period of time were united. Newly found support for the prime minister, and a rise in consumer spending was able to improve the French economy, which without the world cup may not have succeeded as such
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