Despite the unprecedented decision to delay the 2020 Olympic and Paralympic Games in Tokyo, the negative impact on Japan’s economy pales in comparison to the blow from the coronavirus outbreak, economists and market strategists say.
The International Olympic Committee (IOC) on Tuesday caved in to growing calls to postpone the games, and announced they will be held next year due to rising fears about the COVID-19 pandemic.
“Postponing the Olympics at this point has a relatively marginal negative impact, which is actually coming from COVID-19,” Takuji Okubo, North Asia Director at the Economist Corporate Network told CNBC’s Squawk Box Asia on Wednesday. He said the positive impact generally comes from building infrastructure and stadiums and “Japan has already done that.”
Japan is officially pumping $12.6 billion to organize the Olympics, but a national audit board says spending could hit twice that amount, according to NBC News.
Kathy Matsui, chief Japan strategist at Goldman Sachs,…