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Games to Boost Beijing's Growth by 2-3 Pct Points Annually
Beijing's winning of the 2008 Olympic Games could boost the city's GDP by an average of 2 to 3 percentage points a year for the next seven years, a Hong Kong- based international investment bank announced Monday.
The win for China is probably more important for national pride than anything else, and the immediate benefits could be seen in the development of infrastructure, properties and tourism in Beijing, said Yiping Huang, vice-president of Asia Pacific Economic and Market Analysis of Salomon Smith Barney.
"Although it is very difficult to qualify, our guess is that the net contribution of the Games to national GDP will be around 1 percent for the whole period from 2001 to 2008," Huang stressed.
However, the impact on Beijing's economy could be immediate, and the Games could add an average of two to three percentage points to Beijing's GDP growth each year before 2008, he said.
The economist said that over the coming decade, Beijing, whose GDP growth between 1990 and 2000 averaged 11.6 percent, can probably maintain that growth rate, or even higher, with the help of the Games.
He added that the Games would help China to attract more foreign investment and earn more foreign exchange through the tourist industry and other activities, which should be positive for China's balance of payment and the value of the Renminbi, Huang said.
Huang believed that the Games-related stocks may boom, but this is likely to be a gradual process.
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