Hosting the 2020 Summer Olympics in Tokyo is likely push up Japan's gross domestic product by 0.5 percent in that year with positive economic effects worth ¥4.2 trillion, due partly to expected growing demand for new construction and a boost to tourism, according to a research institute's projection.
The hosting of the Olympics in the Japanese capital is expected to produce ¥2.3 trillion in new demand including construction investment, replacement of home electronics appliances and sales of Olympics-licensed goods, SMBC Nikko Securities Inc. said in a recent report.
Construction investment is estimated to reach ¥383.1 billion, fairly small compared with such investment in the past including for the 2008 Olympics in Beijing and 2012 Olympics in London, as Tokyo plans to make use of many existing facilities, the research institute said.