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German Institutes Say Olympic Hosting Offers Little Economic Payoff

Leading researchers caution that projected benefits are small, with likely cost overruns.

Overview

  • In new responses to dpa, Ifo, IWH, RWI and DIW report limited macroeconomic effects from the Games.
  • DIW calls overall gains usually modest and overstated; IWH says public costs typically exceed added revenues.
  • Ifo’s Klaus Wohlrabe warns that realistic budgets will run higher than initial estimates due to lowballed projections and long-range uncertainty.
  • RWI sees potential only if Games-linked infrastructure fixes unresolved local bottlenecks, with benefits tied to execution.
  • Researchers flag short-term side effects such as price spikes and tighter housing, as Berlin, Munich, Hamburg and the Rhine-Ruhr region weigh bid plans with a Munich referendum under way.