Spain hope for economic boost from World Cup glory
Spain won the World Cup with the right kind of football. No one can argue that its tense 1-0 extra time victory over the Netherlands wasn't deserved.
Where some teams chose grim defense, Spain stuck to its attacking philosophy at this World Cup and, in the end, reaped the biggest reward there is. Where others hoofed balls up field and hoped, the Spanish passed, passed and passed until the goals came. In becoming the first European nation to win the World Cup outside of Europe, Spain showed that beautiful football can be winning football, too.
Those who follow the stock market or finances in general know that there has been a huge European Debt Crisis that has been going on for quite some time. In April, Spain saw their credit rating downgraded which in turn caused great fear among the Spanish. Since November of 2009 the etf that tracks the Spanish stock market is down from around $50 to $37. This is after a quick two week run up from $30 which included the run towards the World Cup Final.
While it cannot be said that the World Cup Final run has been the sole reason for the move higher in the stock market, there are many reasons to believe that a World Cup Final championship can help the economy of Spain. On Sunday alone there where millions of Spanish out and about spending money. They flocked to Madrid or a local bars to watch the game. In the long run, a World Cup Final win does not mean that Spain will recover and immediately start to see economic growth. However, It does mean that a lot of money will be spent over the next few weeks which in turn could greatly help many small business spread throughout the country.
The triumph in the final at Johannesburg’s Soccer City, could add as much as 0.25 percentage point to annual economic growth for Spain, from increased consumer spending, according to ABN Amro Bank NV economist Hein Shotsman in Amsterdam. For Spain, that could mean expansion this year instead of a projected contraction.
Where some teams chose grim defense, Spain stuck to its attacking philosophy at this World Cup and, in the end, reaped the biggest reward there is. Where others hoofed balls up field and hoped, the Spanish passed, passed and passed until the goals came. In becoming the first European nation to win the World Cup outside of Europe, Spain showed that beautiful football can be winning football, too.
Those who follow the stock market or finances in general know that there has been a huge European Debt Crisis that has been going on for quite some time. In April, Spain saw their credit rating downgraded which in turn caused great fear among the Spanish. Since November of 2009 the etf that tracks the Spanish stock market is down from around $50 to $37. This is after a quick two week run up from $30 which included the run towards the World Cup Final.
While it cannot be said that the World Cup Final run has been the sole reason for the move higher in the stock market, there are many reasons to believe that a World Cup Final championship can help the economy of Spain. On Sunday alone there where millions of Spanish out and about spending money. They flocked to Madrid or a local bars to watch the game. In the long run, a World Cup Final win does not mean that Spain will recover and immediately start to see economic growth. However, It does mean that a lot of money will be spent over the next few weeks which in turn could greatly help many small business spread throughout the country.
The triumph in the final at Johannesburg’s Soccer City, could add as much as 0.25 percentage point to annual economic growth for Spain, from increased consumer spending, according to ABN Amro Bank NV economist Hein Shotsman in Amsterdam. For Spain, that could mean expansion this year instead of a projected contraction.