Economic impact of 2025 Expo seen at $19bn
TOKYO, March 30, 2024
The economic impact of the 2025 World Expo in Osaka is likely to hit 2.9 trillion yen ($19 billion), up 400 billion yen from the previous projection, due to inflated costs, the Japanese government has said.
The World Expo will be held from April 13 to October 13 on Yumeshima, a man-made island in Osaka Bay, western Japan.
The Ministry of Economy, Trade and Industry revised its calculation for the new estimate, based on Japan's planned spending of up to 235 billion yen for constructing the expo venue in Osaka amid high material and labor costs, Kyodo News agency said.
The new figures are based on a calculation conducted in February, revised from the previous one carried out in March 2018.
The estimate back then for constructing the venue stood at 125 billion yen, about half of the latest projection for spending.
The ballooned construction costs will be split among the three parties -- the central government, the Osaka prefectural and city governments and the business community.
Under the 2.9 trillion yen estimate, the ripple effects of the construction investment are now projected to be 857 billion yen, up from 590 billion yen previously, while those of the operational costs and expenses linked to the global event would be around 680 billion yen, up from 630 billion yen.
The ripple effects of spending by expo visitors are also estimated to rise to about 1.38 trillion yen from 1.29 trillion yen due to the revision.
A total of 161 countries and regions and nine international organisations have confirmed their participation in the Expo as of March 14, according to the Japanese Foreign Ministry.
