France spent €2bn on the Olympics - was it good for the economy?

2024 has been quite the year for France with a snap election and the hosting of the Olympic Games in Paris. And if we’re talking about economic impact, let’s add the six shows Taylor Swift did in the French cities of Paris and Lyon on her Eras tour. 

The Olympics is thought to have cost around €9bn to host, though only around €2bn came from the national purse. 

Will the country reap economic benefits long and short term from their investment or was it just money well spent for two weeks of the year’s best viewing?

In this episode of The Big Question, Angela Barnes is joined by Agnès Bénassy-Quéré, deputy governor of the Banque de France and former chief economist for the French Treasury to discuss the country’s current economic outlook.

Many people in the tourism industry expected Parisian tourist attractions to be bursting at the seams this summer. In fact, although Paris was certainly full of life, tourist attractions were quieter than normal as people who would usually visit the city in the summer chose alternative destinations due to fears of over-priced accommodation and difficulty travelling around the city. 

There are some schools of thought, however, that suggest that, long-term, the Olympics could act as a showcase for the city and may increase first-time visitors to the city and country during the next few years. 

Some industries have seen a boost. 

“We survey[ed] about 8,000 companies in France. We estimate that the quarter on quarter [GDP] growth rates for the third quarter could be boosted by about a quarter of a percentage point (0.25%),” Agnès explained.

“It concerns hotels, restaurants, transportation, security, but also broadcasting and of course, the sales of tickets. So this is a short term effect. It's a one