Economists said that the U.K. is on track for a £3B ($4.3B) economic boost brought about by Euro 2016 and the Rio Olympics which are "both set to dominate this summer," according to John Glenday of THE DRUM. Armchair fans are expected to "oil food, drink, retail and betting businesses throughout both competitions as consumers open their wallets whilst supporting Team GB in Brazil" and the home nations of England, Wales, Northern Ireland and the Republic of Ireland as they "do battle in France." Chief "beneficiaries of this largesse are likely to be pubs, supermarkets and sports shops as fans stock up on beer, snacks and merchandise" throughout June and July. IHS Chief European & U.K. Economist Howard Archer said, "The better that England tend to do, the better the [economic] impact. The earlier England are knocked out, the less inclined people are to buy any sort of souvenirs, if England get knocked out early you’ll probably find replica shirts in the bargain bin." Amongst those "expecting a windfall is Carlsberg" which anticipates earning as much as £60M ($87.3M) as a direct result of 12 million consumers "hitting the pub to watch the daily diet of matches" (THE DRUM, 5/3). BUSINESS MATTERS reported the 2014 World Cup, where England went out at the group stage, "is estimated to have contributed" £2.5B to the U.K. economy in consumer spending. Yet industry analysts believe that figure "could be even higher for Euro 2016 as the British Isles will be represented by four teams" for the first time since '58. The "Olympics is likely to contribute less additive value to the economy" than Euro 2016 with the difference in timezone between Brazil and the U.K. meaning many of the biggest events "will be broadcast late at night to relatively small TV audiences." Begbies Traynor Managing Partner Julie Palmer said, "A combination of a successful Euro 2016 campaign and good weather will be a shot in the arm for the economy" (BUSINESS MATTERS, 5/3). In London, Joe Hall reported stock markets "could similarly enjoy the benefits of a successful tournament" but the risk of an early exit could "further dent investor sentiment already dented by EU referendum fears." Panmure Gordon Chief Economist Simon French said, "If England proceed a long way in the European championships there's precedent from Euro '96, the economic sentiment was apparent in consumer confidence data at the time, although you can't say with certainty it was causal" (CITY A.M., 5/1).
