Andina

BCR: Textiles, services likely to benefit most if Peru qualifies for Qatar 2022

Photo: ANDINA/Vidal Tarqui

Photo: ANDINA/Vidal Tarqui

11:02 | Lima, Jun. 11.

The Central Reserve Bank (BCR) on Saturday pointed out that the textile industry and services sector might become the main beneficiaries of the eventual qualification of the Peruvian soccer team for the Qatar 2022 World Cup, as had happened in the previous edition.

"In 2018, after 36 years, being able to participate in the World Cup generated plenty of enthusiasm, and that was reflected in some sectors, which certainly had a significant impact," BCR Economic Studies Central Manager Adrian Armas explained.

"The garment sector, for example, received a higher demand for national (soccer) team jerseys, in addition to the services sector on the travel side," he added.

The BCR official said there is no specific indicator of how much the qualification of Peru's team for the Qatar 2022 World Cup can contribute. Nonetheless, there is certainly an impact on certain sectors.

"At the aggregate level, there is no impact at the macro level that can be clearly identified. Yet it does not mean that obviously some particular sectors can be dynamized," he expressed.

"Just like on every fan, the possibility of qualifying gives us a plenty of joy. What was observed in 2018 is —let's say— the closest antecedent, as there is not much evidence of the World Cups of 1970, 1978, or 1982 because at that time it was more common to qualify for World Cups (tournaments) compared to nowadays," he added.

According to the Small Business Association (COPE) of Lima Chamber of Commerce (CCL), if Peru qualifies for the 2022 Qatar World Cup, the economic reactivation might be "explosive," because sectors such as household appliances, garments, travel, sporting goods, transportation, and food, among others, might stimulate its expansion.

"Our participation in the 2022 Qatar World Cup will generate short-term economic growth, as it is sustained by the euphoria of the soccer festival," the CCL indicated.

"If we take the 2018 World Cup in Russia as reference, Peru's GDP increased by US$1 billion. Similarly, at some shopping centers during the World Cup month, sales grew by 13%, and (sales of products by) some brands, much more related to sports, (expanded) by up to 30%," it concluded.


(END) CNA/MVB

Published: 6/11/2022