THE Beijing Olympics are widely agreed to have been the best ever – and the most expensive. They cost China over $40 billion to host, but according to Ashburton investment manager Jonathan Schiessl, who runs the Chindia Equity Fund, they will have little impact on economic growth in the area.
‘If you look at somewhere like Greece, the Olympics had a big impact on growth on a short-term basis, but what it has cost China is a pinprick in the total wealth of their economy, so it’s really only the smaller economies that benefit,’ he said.
‘Because they have been shutting down factories in Beijing, people have been questioning if China is slowing down, but it’s just because of the Olympics and the pollution issue.
‘Beijing represents only two per cent of the Chinese GDP. Now if they were to shut down the whole of Beijing, yes, it would have an impact on certain sectors and industries.’
Pictured: The party is over for Beijing
