Monday, 23 July 2012

Olympics may not pull UK out of double-dip recession

The UK has waited years for the Olympics to arrive and, finally, it is here. The 30th Summer Games, which cost the British government a gut-busting £9.3 billion to organise, is hoped could help wrench the country out of a double-dip recession. But analysts are no longer so confident, with many expecting that the games will have a dismal effect at best on the country's flailing economy.

A recent report released by Moody's revealed that any benefits caused by an uplift in games-related tourism might be short-lived, while Q2 GDP estimates by the ONS, which come out on 25 July, are expected to show that the placebo effect of the Olympics is likely to be overshadowed by the eurozone crisis.

MarketWatch, Wall Street Journal