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04 July 2006
It may come as small consolation to football fans mourning England's defeat against Portugal on Saturday, but there is no link between World Cup success and economic performance, according to experts.
The long-held assertion that the UK economy benefits from the 'feel good factor' caused by a successful World Cup campaign is a myth, a study from Halifax found.
Despite a tendency for the economy to be stronger than average when England has been knocked out at the quarter finals stage, when the team has made it beyond the last eight, figures have shown the economy to be weaker than usual.
On the two occasions when England progressed beyond the quarter finals, the UK economy turned in a relatively poor performance, with GDP increasing by only 1.9 per cent in 1966 and 0.8 per cent in 1990.
In fact, economic growth has a tendency to be lower than average in World Cup years, with an average GDP growth of 2.3 per cent, compared to an overall average of 2.5 per cent since 1950.
"Our research shows that the World Cup feel good factor sadly appears to be a myth," said Halifax group economist Martin Ellis.
If you are concerned about the effects of a weaker economy on your finances, order your credit report now and find out where you stand.
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