The Effects of Mega-Events on Government Spending Multipliers: Evidence from the Qatar 2022 FIFA World Cup

Abstract

Ahmad, a senior economist in Qatar, analyzed the impact of government spending on economic growth and diversification, focusing on the lead-up to the 2022 FIFA World Cup. He found that government spending, despite several fluctuations, boosted growth and diversified the economy away from oil and gas into sectors like construction, finance, and real estate. However, these spending also led to budget deficits and inflation, with fiscal multipliers generally below 1. Interestingly, the fiscal multipliers exceeded 1 in the years before the 2022 World Cup, highlighting the economic importance of mega-events.