Article:
TOKYO (Kyodo) -- If the ongoing spread of the new coronavirus forces Japan to cancel the Tokyo Olympics, it would reduce the country's annual gross domestic product growth by 1.4 percent, according to an estimate by a securities firm.
In a report released Friday, SMBC Nikko Securities Inc. projects that the Tokyo Games would create demand through spectator consumption and the staging of sporting events totaling 670 billion yen ($6.4 billion) and the cancellation of the Olympics would sap Japan's GDP by about 7.8 trillion yen.
Comments and Ideas:
The postponing of the Olympics should be a given. If the virus situation was just a one country situation, like some virus situations over the past twenty years, then maybe the Olympics would be OK. But this seems to be a global situation, as and as such, too many people globally are going to be affected. Yes economic losses from the postponement but maybe in the short term is better to protect lives. The government can step in and provide some assistance to those businesses are are going to be hurt from the postponement.
Article:
The company believes that the Olympics will be canceled if the spread of the deadly virus continues until July. Under that scenario, corporate revenues would fall 24.4 percent in 2020, compared with last year.
On the other hand, the report also presented a scenario under which the spread of the coronavirus ends in April, with the Olympics being held as scheduled and the economic fallout from the virus limited to a 0.9 percent drop in GDP growth.
Even with this optimistic view, corporate revenues would likely decline by 14.9 percent due to such factors as a plunge in the number of tourists and dampened domestic consumption.
The Tokyo Games are scheduled to take place between July 24 and Aug. 9.
Comments and Ideas:
Everyone wanted an optimistic outcome to the virus situation. But so far it hasn't. Of course late spring and summer always brings some kind of optimism. Lets hope, at least the virus can be slowed and some kind of normality will result in the late spring and summer. Some kind of normality for societies and businesses and for jobs.
Have a nice day and be safe out there!
© 2020, Tom Metts, all rights reserved
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