Repechage Qatar 2022: how would a possible qualification for the World Cup impact the Peruvian economy?

Peru managed to reach fifth place and its right to dispute the playoff for the World Cup Qatar 2022and although there are two and a half months left to play the final match, it is important to analyze the impacts that this long-awaited achievement would have.

Overall impact on the economy of qualifying Qatar 2022

According to Jorge Carillo Acosta, professor and finance expert at the Pacífico Business School, the GDP of the Peru could increase around US$ 1,000 million for going to the World Cup (almost 0.5% of the GDP).

This is due to the greater self-esteem and optimism of the population, which would translate into an increase in private consumption.

Impact on companies:

The teacher explains that the greater private consumption would increase the production of goods and services, the generation of employment and financing at the business level.

Thus, the main benefited sectors would be:

• Technology: considering that the World Cup will be played in the mornings and in the afternoons (10:00 am and 2:00 pm in most games), many people will buy tablets or high-end cell phones to be able to appreciate the event from their work centers. This sector could grow by 25%.
• Appliances: the sale of televisions usually grows 30% in the year of the World Cup, but, with the presence of the Peruvian team, it could rise by up to 50%.

• Textile sector: the sale of t-shirts, polo shirts, jackets, hats, scarves, flags, etc., all alluding to the “Peru brand” would increase. This industry would grow by 20%.
• Restaurants: Considering that many games will be played at lunchtime, the sector could grow by 20%.
• Financial entities: loan placements would grow by 20%, both at the business level and in consumer loans.
• Others: businesses such as sporting goods stores (sports shoes, t-shirts, hats, etc.), travel agencies and airlines, souvenirs, sports betting, and the retail segment of food, beverages and snacks will benefit.