MOSCOW(AFP): While the World Cup that kicks off later this month will focus the attention of football fans around the world on Russia it will have little impact on the country’s economy, analysts at Moody’s rating agency have said.
“The games will last just one month and the associated economic stimulus will pale in comparison to the size of Russia’s US$1.3 trillion economy,” said Kristin Lindow, senior vice president and analyst at Moody’s.
“We do not expect the World Cup to make a meaningful contribution to broader economic growth,” she said in a statement accompanying a report released late Thursday.
The World Cup, which runs from June 14 through July 15, will see games played in 11 different cities. The report expects ‘very limited’ impact at the national level, although certain host regions such as Kaliningrad and Mordovia with little of their own revenue should experience a bigger boost.
But Moody’s said the remoteness of several of the host cities also means Russia is unlikely to get much of a lasting tourism benefit.
“The impact is likely to be even lower than that of the Sochi Olympic games, which developed an under-built resort area that is more accessible than many of the regions where the World Cup will be staged,” it said.
Nevertheless, Moody’s said those regions would still derive some economic benefit from the investments.
The report also found “food retailers, hotels, telecoms, and transport will see a temporary boost in revenue” from the World Cup.
The construction sector was the main beneficiary of investment, but this has already been completed.