After the final whistle blew in Moscow, France officially secured its first World Cup victory in two decades. The team’s 4-2 triumph over Croatia incited a restoration of national pride for a country that in recent years has been riddled by terrorist attacks and economic malaise.
While the 4-2 triumph over Croatia reinvigorated national morale and confidence for a country that in recent years has been riddled by terrorist attacks and economic malaise, the French economy isn’t expected to feel the same intense restoration.
Paris-based credit insurer, Euler Hermes said that according to his calculations, the World Cup victory will bring an additional 10th of a percentage point of economic growth to France this year. The country’s gross domestic product will increase by 1.9% rather than 1.8%.
The World Cup victory could also provide a boost for Emmanuel Macron, the president whose popularity has fallen as he overhauled France’s rigid labor market and slashed taxes. In the months following the glory of France’s 1998 World Cup win, President Jacques Chirac’s approval ratings increased between 10 and 18 percentage points, depending on the poll.
Although a dramatic economic impact is unlikely, consumer confidence will feel the ripples of national celebration. “There’s an irrational part to the economy that’s linked to self-confidence, to desire, to enthusiasm and that’s what the World Cup is bringing to us,” Economy Minister Bruno Le Maire said earlier this week.
However, for the larger economy, the small jump in consumer confidence will be marginal. After France’s 1998 win, consumer confidence spiked but showed no noticeable impact on the GDP. This year’s economic growth may disappoint the government’s 2% forecast, according to the Bank of France. It expanded 2% last year, a six-year high.