“If Spain wins the World Cup, we’ll have to rethink our GDP growth forecast.” Those were the words of the minister of industry a few days before the World Cup final; going by the same rule, losing could lead to a slight decrease. The idea is simple: If I wake up happy and in a good mood, I might go out for lunch, get a fancier wine for dinner and book my vacation with a bit more enthusiasm. And if 40 million people wake up optimistic and confident, that could make a difference for the national economy.
Ironically, it was the Dutch bank ABN AMRO that researched the topic (after the 2006 World Cup) and released the study “Soccernomics,” which puts the economic effect of winning the World Cup at an additional 0.7 percent year-over-year growth for the winner; the loser is forecast to see a negative impact of 0.3 percent.
The economic effect in Spain remains to be seen, but the country certainly forgot about recession and unemployment for a few days. People focused on what they have in common rather that what differentiates them, and embraced the colors of our flag, finally getting over the bitter memories of dictatorship that it carried. What else can brands do beyond the typical endorsement or congratulatory note to ride out the wave of positive public sentiment following a win?
Photo Credit: St. Groove