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Top German Institutes Cast Doubt on Economic Gains From Olympic Bids

Voter scrutiny now looms over local bids following warnings of limited returns.

Overview

  • A dpa survey of DIW, Ifo, IWH and RWI finds broad skepticism that hosting the Olympics would deliver significant, lasting gains for Germany’s economy.
  • Researchers say public costs typically exceed additional revenues and warn that budgets are often underestimated, with Ifo’s Klaus Wohlrabe expecting overruns.
  • Evidence points to small, short-lived effects concentrated in sectors such as hospitality, retail and construction rather than broad national growth.
  • Institutes flag risks of temporary price spikes and tighter housing markets, with DIW noting potential rent and property price increases.
  • Berlin, Munich, Hamburg and the Rhine-Ruhr region are exploring bids, with Hamburg set for a May 2026 referendum and Munich holding a citizen decision, while RWI sees potential only if infrastructure solves preexisting problems.