Certainly, Italy’s victory in Euro 2020 will impact GDP. Some studies forecast growth between 0.6 and 0.7%. This is consistent with an analysis by Coldiretti according to which the Italian win at the 2006 World Cup contributed a few percentage points to the GDP growth of that year. Following a victory in a world or European football competition, there is the entire system of “made in” of a country that benefits from the image of its products as a result, mostly in fashion, food, wine, furniture, tourism; and all goods or consumptions that are linked to positive emotional factors.
Beyond the image and the potential increase in exports, the great football victory accentuates the national sentiment of consumers and generates a climate of confidence and self-esteem. Hence a greater propensity to consume or even to invest, given the weight of intangible indices such as business and consumer sentiment.
Dino Ruta, Professor of Sport Management at SDA Bocconi, explained to the readers of Corriere della Sera that those who observe Italy from abroad, such as large investors and funds, grasp this improvement in its entirety. Another interesting comment collected by the same newspaper is from the British equity manager of M&G Investments Randeep Somel, according to whom: “Italy, which has been one of the countries most affected by the pandemic, now has good reasons to rejoice and feed a new sense of national pride. As the coronavirus restrictions recede and the stimuli of the Next Generation EU produce their effects, Italy will increasingly establish itself as one of the highest growth countries in Europe in the two-year period 2021-2022”.
Featured image: Elymolt90 via Wikimedia.