–Japanese Media comment on Olympics Impact on Economy
Japanese Industry News predicts China’s economy will realize soft landing after 2008 Beijing Olympic Games. It is predicted that the overall direct and indirect investment will have mounted up to 4000 million dollars by then. Half of the investment came from field and building constructions.
According to the China National Information Center, Olympics have contributed a two percent raise annually from 2002 to 2007. Experts say Beijing Olympics won’t result in economic downturn, as opposed to Japan’s 1964 Olympic Games, according to the magazine.
East Aisa Economy Review, on the other hand, predicted China’s economy will confront side effects of hot economy after 2008. According to its analyses, Olympics will bring in too much currency trading, which will result in hot economy and essentially—inflation. The current economic growth of 12 per cent is exceeding China’s potential capacity of economic growth. Therefore, economic adjustment is necessary after year 2008. If the central government is unable to control the tendency of “over-heating”, then the economic growth rate will be even higher. And there will appear economy bubble in real estate industry.
Take Japan for example. Japan experienced severe economic depression and security crisis after holding 1964 Tokyo Olympic Games. But Japan have successfully recovered from it and achieved jack-ups after a short period of time. Japan’s success is as a result of the common use of high technology, improved ability of exporting, high needs of national commodities.
But China’s situation is fairly different. China doesn’t possess some of the key elements under the current situation, which are needed for economic recovery. Some of the concerns are the raising price of oil and rice and the high fluid of currency, which never happened in Japan.