2006 World Cup lifts business perceptions
Germany is hosting the World Cup for the first time in 32 years. Fans the world over will be travelling to Germany to support their national teams playing at soccer stadiums around the country. The World Cup does not start until 9 June, 2006, but, for soccer fans, its kick-off was on December 9 when the fixtures were drawn. Here we note that hosts Germany will meet Costa Rica in the opening match in Munich on 9 June.
Will this create a business bonanza some may ask? Suffice to say that the sale of television broadcasting rights for the FIFA World Cup Germany 2006 has already generated over USD1.7 billion for the games. The EU autumn forecast projects for 2006 and 2007 indicate a marginal strengthening of GDP growth to 4 per cent and 4.2 per cent respectively. Since the European economy is expected to grow at a faster rate in 2006 and investment is especially strong in the commodity-exporting countries, therefore one expects orders for German machinery and plants to rally. This will translate into a sustainable impetus for booming German exports, even if international economic activity eases and the US dollar may continue to devaluate in 2006.
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