Tokyo won its bid to host the 2020 Summer Olympics. Japan has a problem of ageing for many years and there is a budget deficit and large amount of government debt. Government expenditure excesses the tax revenue. Host the Olympics is a good chance for the Japanese government to rebuild economic growth.

Government already decided to increase the sales tax to 8 percent from 5 percent next April, and to 10 percent in 2015. I believe that in the next few years, the unemployment rate of Japan will decreased a lot because the development of manufacturing industry and tourism of Japan will provide more job opportunities for the workers. However the inflation rate will rise due to higher tax rate, the reduction of people’ real income and the appreciation of yen. And Japanese government need to face to the problem of how to get enough capital to improve the infrastructure and build the new stadium.

Whether the 2020 Olympics will bring positive effects to Japan are still depends on many other external and internal factors. Personally it’s just a bad news for me because I need to spend more to buy the imported products.

http://www.mirror.co.uk/sport/other-sports/athletics/olympics-2020-tokyo-wins-bid-2259403