16 Awesome Charts On The Olympics From Goldman Sachs

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The London Olympics are just over 2 weeks away.At this point many fan are already  wondering about the medal tallies. While others ware wondering about the economic impact of this colossal sporting event.

We pulled 17 charts from a new Goldman Sachs report that projects the outcome and economic impact of London Olympics.

Over the past 10 Olympics, the host nation has won 54% more medals on average than in years when it did not host

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

Being a rich country helps you win medals. Being the host country helps even more. These effects vary by sport

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

Goldman predicts medal attainment based on Growth Environment Scores. This chart shows how accurate this index is.

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

This chart shows how economic factors affect GES and therefore medal attainment.

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

Brazil and India have been performing weaker than they should, while China and Russia place a strong emphasis on excellence in sports

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

Here's Goldman's forecast for gold medal winners at the 2012 Olympics. The bank has extraordinarily high hopes for Britain.

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

And their forecast for total medals at the 2012 Olympics. The U.S. tops the list with 108 medals.

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

Hosting the Olympics can be increase home prices, as in Los Angeles after the 1984 Games

Hosting the Olympics can impact home prices in 3 ways:

(i) To the extent that infrastructure is subsidized and benefits of the public investment outweigh costs, local prices can increase
(ii) It helps raise they city's profile providing a boost to tourism and local economy
(iii) Via intangible benefits like pride, confidence and optimism which can help boost the local economy.

Home prices in turn act as a good gauge of the impact on the host city because housing markets are local and the economic impact on local house prices should be more noticeable than say the impact on stock prices or country exports. House prices also potentially capture the benefits and any local costs associated with hosting the Games.

Previous research on the subject shows little proof that house prices increase after hosting the Olympics but it is unclear if this is because of inadequate granular house price data or because there truly is no correlation.

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

And similarly increased in Atlanta after it hosted the Olympics in 1996

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

While the Olympics might not directly impact the foreign exchange market, it may be a good tool to pick long-term winners in the Forex market

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

Benefits of the Olympics could be priced into stock markets at the time of the announcement. Given the recent below-average performance in the UK after the Olympic announcement, investors could look forward to a positive year in equities following the Olympics

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

Before we get too excited about the benefits of hosting the Olympics take a look back at Australia which in retrospect didn't benefit from hosting the Olympics

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

So where does this really leave the UK?

'Some parallels can be made between the Sydney and the London Games. These include: the host cities are large population centres of the home nation; significant national investment in new infrastructure has been made; public support for the Games is high; and the host nation's exchange rate is near cyclical lows at the time of hosting.

However, the defining feature of whether the London Games provides a better economic return than the Sydney Games could well be the high degree of slack in the UK economy in 2012 compared with a capacity constrained Australian economy in 2000.'

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

Olympic investment in China was $40 billion over a 6.5-year period, but the Beijing Olympics took place during the global financial crisis making it hard to isolate 'Olympic effects'

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

And tourism didn't live up to expectations

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

In fact Beijing shut down industries to reduce pollution causing a huge drop in heavy industrial production

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

Looking to the future Brazil is hosting the Olympics in 2016 and the FIFA World Cup in 2014. But Brazil faces a large infrastructure deficit

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

CONCLUSION: While the Olympics are expected to cost £8.5 billion ($13 billion), hosting the Olympics could have short and long-term benefits

The cost of hosting the games is estimated to be £8.5 billion ($13 billion) which represents 0.55 per cent of annual UK GDP or 1.4 per cent of annual government revenues. A significant portion of this is expected to be recovered by sale of land and other facilities over time.

But hosting the Olympics has some short and long-term impacts. In the short-term, the biggest impact is through expenses on goods and services, through temporary employment and indirect effects. Goldman expects the Olympics will boost UK economic output in the third quarter of 2013 by around 0.3 - 0.4 ppt quarter-over-quarter (QoQ) (+1.2-1.6%qoq annualized), but this will be largely reversed in the fourth quarter.

In the longer run, the UK would benefit from being a tourist destination and a location for foreign investment. Run-down parts of London will also benefit from the regeneration, but with London already being a tourism hub the benefit could be more limited.

Note: Goldman analysts Kevin Daly, José Ursúa, Kamakshya Trivedi, Hui Shan, Thomas Stolper, Constantin Burgi, Francesco Garzarelli, George Cole, Andrew Benito, Huw Pill, Tim Toohey, Yu Song, Michael Buchanan, Alberto Ramos all contributed to the note.

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