The Strong Economic Impulse for Argentina After Being World Cup Champion

Argentina's economy should receive a benefit due to the result in the final.

After achieving the World Cup and its glory, Argentina would receive more than a star in its badge, the country should get a benefit in its economy, according to a study by the University of Surrey, from the United Kingdom.

According to the research, which takes into account economic data from 1961 inwards, whoever wins the World Cup usually receives an additional growth of 0.25 percentage points in their Gross Domestic Product (GDP) in the two consecutive quarters to victory.

"If there is one of the two countries that can benefit the most, similar to the case of Brazil, it is Argentina and not France. There would be a minor effect for France, since, in addition, it is the reigning champion so it would be a minor surprise," said the academic. That is because, in comparison, France isn't having that much economic trouble, on the other hand, it will make a difference for Argentina.

Mello is not the only one who thinks this way: Forbes magazine columnist Allen Saint John wrote on the occasion of the 2014 final between Argentina and Germany that "in the months following the victory, there seems to be a short-term increase in productivity."

Even reaching an advanced stage such as the quarterfinals could lead to higher exports and a diversification of the exchange, Mello explained.

However, there are exceptions, and countries involved in economic crises at the time of the development of the World Cup may not receive the same profits. "If there is a country that won one of the last World Cups and that did not benefit much, it is Spain in 2010, involved in the European sovereign debt crisis," the researcher illustrated. Which may be a similar case to what is happening in Argentina.

It is to be seen if this data will finally impact Argentina, if the World Cup triumph makes the country more popular around the world and if that increases its exportation the first three months following the title.

Source: https://www.baenegocios.com/