All eyes were on the World Cup final over the weekend—from tiny offshore investment center Bermuda to football powerhouse Brazil. Eventually, France waved their flag of victory among the 32 teams that competed for that elusive championship. However, beyond the medals and the golden trophies, one of the most highly anticipated and talked-about legacies of this international sporting event is its economic impact – especially on the host nations.
Even just at the early stages that led to the 2018 World Cup, analysts have shared their predictions on how the sporting competition can make or unmake Russia’s economy. While there was a rising optimism from Russian officials of how it can boost the country’s financial standing after the game, the final calculations of a whopping cost of over $12 billion may find recouping a challenging feat.
The fears of an impending failure to recover from the financial responsibilities of hosting the World Cup were expressed by financial and economic experts, citing the similar outcomes from host nations in the past. According to economists, the month-long event would deliver very little and limited benefits to the Russian economy.
Additionally, Moody’s Investor Service emphasized that Russia should at least expect short-lived economic benefit from and hosting the renowned FIFA World Cup Tournament. In fact, these are already visible through growth in infrastructure spending, boost in tourism and related sectors like hotels and restaurants, and the increased sales for retailers and small-scale business.
While the economic benefits of the World Cup for Russia remains debatable, FIFA, on the other hand, has been reported to have brought home $6 billion in revenue. The amount is actually 25 per cent more than what the international organization earned in 2014 Brazil.