Economists Watching to See If Japan Can Avert Olympic Cliff
Tokyo, Dec. 31 (Jiji Press)--An economic boost from the Olympic Games is often followed by a downturn, and there are widespread anxieties that the 2020 Tokyo Games will be no exception.
Economists are divided over whether Japan will be able to avert a so-called Olympic cliff. Some economists pin hopes on stimulus measures the government has mapped out, but others are wary of a fallback in consumer spending.
An Olympic cliff refers to a recession caused by a sharp drop in investment due to the disappearance of huge demand for infrastructure development after the quadrennial sporting event.
After the 1964 Tokyo Olympics, the Japanese economy suffered a slowdown in growth and subsequently plunged into a slump. Host countries likewise faced economic stagnation after the 2000 Sydney Games and 2004 Athens Games.
The Japanese government put together an economic stimulus package totaling about 26 trillion yen in early December, aiming in part to shore up the economy after the 2020 Olympic and Paralympic Games.
[Copyright The Jiji Press, Ltd.]