It's often argued that major sporting events have a negativeeconomic impact on host countries in the long-term. The jobcreation numbers touted are often too inflated and sometimes acountry is left saddled with debt. Those who say otherwise often point to the 'Barcelona effect',referencing investment in Barcelona ahead of the 1992 summerOlympics which helped revive tourism. Poland and Ukraine are hosting the Euro 2012 which began today inWarsaw and will end on July 1 in Kiev. In their latest report,Societe Generale analysts Jaroslaw Janecki and Rosbank Vntsibanolook at what this means for the Polish and Ukrainian economies. Poland Poland is seeing an infrastructure boom and Janecki and Vntsibanovwrite that the country managed to maintain strong economic growthafter the 2008 crisis because of infrastructure spending tied tothe European Football Championship. In fact, infrastructure spending associated with the UEFA EURO 2012amounted to 110 billion zloty (about €25.6 billion). 63billion zloty was connected with road construction. Investment inhotels also increased. Infrastructure projects add around 1.5percent to Polish GDP. Ukraine Unlike Poland, Ukraine was hit hard by the crisis and in 2009 realGDP fell 14.8 percent. But infrastructure investment surrounding the soccer tournamenthave been a major driver of investment activity growth.Infrastructure expenditures related to the UEFA EURO 2012championship, totaled 107 billion hryvnia or 8.3 percent of GDP.More than 73.8 percent of Ukraine"s UEFA EURO 2012investments have been aimed at modernizing their transportationinfrastructure, namely urban transport, roads, railways andairports. But expenses tied to the Euro 2012 budget were a burden to thegovernment with 49.2 percent of the funding coming from the centralgovernment and 3.4 percent from the regional budgets. Janecki andVntsibanov write, "...government expenditures on the championshippreparations, which exceeded 4.4% of GDP, significantly expandedbudget deficits and contributed to the rapidly rising debt burden." Inflationary risks Both Poland and Ukraine are expected to see demand-driven inflationpressure in June, especially in the prices of food, alcoholic andnon-alcoholic beverages, tobacco, restaurants and hotels. Of the two countries though, Ukraine is more likely to be impactedby inflation since food makes up a larger share of its consumerbasket. The competition is expected to ramp up food prices evenmore so given expectations of a poor harvest in 2012. I am an expert from ledlightfitting.com, while we provides the quality product, such as Motion Sensor Led Night Light , Flexible Led Ribbon Light Manufacturer, Flexible Led Ribbon Light,and more.
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