Goldman Sachs: Olympics to boost Q3 GDP (and GB will win 30 golds)

Goldman Sachs has predicted the London Olympic Games will boost the nation's economic output by as much as 0.4 percentage points in Q3.

The investment bank says spending on goods and services, particularly in shops, restaurants and hotels, will have a significant short-term impact on GDP. But it also said the benefit would be stunted somewhat by the decisions of some tourists to stay away from the country during the Olympic Games. Additionally, Kevin Daly, Goldman's chief UK economist, said the benefit would be "largely reversed" in Q4. "It is difficult to estimate what the net effect of the indirect and other offsetting effects will be [on GDP]," he said. "As a central estimate, we have assumed that these effec...