UK's 1 billion Euro 2004 win

It is estimated the Euro 2004 football tournament will provide a 1 billion boost to the British economy.

07:57 28 May 2004

It is estimated the Euro 2004 football tournament will provide a 1 billion boost to the British economy.

The centre for economics and business research (cebr) believes if the English team make the quarter finals, the economy will see gains from increased consumer spending and increased advertising expenditure.

However, this short-term spending will make it more difficult for the Monetary Policy Committee to assess the impact of recent rises in interest rates on the consumer sector.

The economic impact of the tournament will be in contrast to that of the World Cup 2002, which actually had a negative impact, due to matches taking place during working hours, consequently affecting productivity and employee attendance.

But cebr predicts that the main economic boost is likely to be from the impact on consumer spending, on items such as new televisions and replica shirts.

An estimated 435 million will be spent on such items in May and June. In addition 116 million could be spent per game in pubs, clubs and off licences.

Productivity and consumer spending in general should not be too affected. Most of England's matches are to be played in the evening, so employees will not have to take sick-leave to watch the matches or miss Saturday morning shopping opportunities.

It is estimated 60,000 fans could leave the UK to travel to Portugal. This will impact on the travel industry, with more money being spent in British travel agents.

The company also estimates around 164 million will be spent in the media over the next six weeks, as companies take advantage of the Euro 2004 theme