Argentina won their third World Cup. Inspired by the national team, thousands of Argentina fans will be celebrating the effect the World Cup can have on their pockets in the future. According to an academic article published last September, A World Cup winning country sees additional GDP growth in the months following the victory. Can it be followed in our country this time?
For now, there will be an immediate economic effect. The FIFA will give AFA $42 million for winning the World Cup in QatarConmebol will also pay him $10 million. This 52 million will go towards increasing the central bank’s total reserves. “The AFA has access to the official market to pay players with financial domicile abroad”, so “it settles but pays in official dollars”, details from the financial institution. Discovery About the process.
However, this may not be the most important economic effect the World Cup will have on the country. Article published by the author at the University of Surrey (United Kingdom), Marco MelloEntitled “A Kick to the GDP: Consequences of Winning the FIFA World Cup”. (“Kick to GDP: The Consequences of Winning the FIFA World Cup”) says Winning the soccer World Cup means that country’s GDP grows by at least 0.25% more in two consecutive quarters..
According to Mello this will happen. Mainly because of the export growth of the winning countryIt is produced by “ Make your products and services more attractive National markets in the global market”, affirms the author.
Will this happen in Argentina in 2023? The question arises because the author is unable to determine whether this has happened since the data on the growth of our country’s GDP in 1978 and 1986 is available only from 1993 onwards.
However, Mello considers that, Despite Argentina’s “chronic economic instability,” there are conditions for the country to benefit economically. Victory over France. “I think Conditions are in place for Argentina to reap at least a small economic gain from winning the World CupDespite its chronic economic instability”, the author of the work affirmed in the conversation Discovery.
“For example, the very high inflation rate that Argentina is currently facing Make Argentine exports particularly attractive in the world market” he adds in line with the general argument of the article.
Specifically, Mello says that Expect Argentina GDP to grow 0.25% more than expected For next quarter i.e. from next year onwards. The 2023 budget, approved a month ago, estimates national growth at 2% for the entire coming year.
“However, my article highlights significant heterogeneity depending on the country in which the World Cup is studied, as many unobservable factors may be at work. Therefore, It is difficult to decide whether the effect will ultimately be more or less than 0.25%.The author clarifies.