Economists: Post-Olympic downturn unlikely

Most countries who have played host to the Olympics have drawn enormous economic benefits certainly in the lead-up to the event. But several have then had to suffer a bit of a slump after the euphoria of the Games. Eyes are turning to Beijing as the Summer Olympics draws ever closer. Despite the gloom-and-doom chatter, many analysts say they do not expect any downturn after this massive sporting event. Chen Lijun takes us through their arguments.

The Director of the National Economic Research Institute at the China Reform Foundation was speaking at the Beijing Forum on the economy in the context of the Olympics. Fan Gang said he is very optimistic about the health and growth of the economy, even after the Games end in August.

Fan Gang, Economist of China Reform Foundation, said, "Because of the construction of Olympic venues, Beijing has postponed the building of some of its infrastructure. And this will help support Beijing's economy after the Olympics. Of course preventing an overheating economy is always a concern. But China has been making adjustments since the end of 2007. So we expect a new round of development to begin after the Olympic Games."

Meanwhile, Gerhard Heiberg, chairman of the International Olympic Committee Marketing Commission, says he thinks the tourism and manufacturing sectors will benefit most from the event.

Gerhard Heiberg, Chairman IOC Marketing Commission, said, "China is likely to attract more visitors after the Olympics. Those industries can look forward to a boom. In the long term, not only Beijing but also China will enjoy benefits."

Heiberg added that he thinks the Olympics will also drive growth in China's sports sector. China's sports industry is still relatively undeveloped. But the Summer Games could bring valuable opportunities with many international sporting events often choosing to use venues in former Olympic host countries.