January 30, 2012
The general consensus has been that in the years running up to the competition, the British economy has been bolstered by activity in and around the Olympic Village. House prices in Stratford and the surrounding areas have seen a significant increase (in some cases they have increased by 10 per cent), and almost 40,000 jobs have been created as a direct result of the Games. Stratford City itself has seen a major revamp, with the construction of the new Westfield, the largest shopping centre in Europe, constantly drawing trade from tourists and locals alike. This new supermall has proved so popular in fact, that it saw 160,000 customers on the first day alone.
Now that the event draws ever closer, and the Olympic hype reaches new heights, what effect will the 2012 Games really have on the UK’s economy? One thing is for certain; in the midst of the Eurozone crisis, many people are wondering, and hoping, that London 2012 will be enough to bring England out of its current slump for good.
We feel that between July and September this year, Britain’s economy will indeed be boosted. However, whether this becomes a lasting legacy depends entirely on what happens to places like the Olympic village after the Games, and the tourists, have gone.
… Having said that, this boom is not a sustainable phenomenon. When the crowds leave, so too will the profits, and unfortunately, the two months of economic growth that we’ll witness is unlikely to be significant enough to lift us out of recession in the long term.