1、04From values to economics09Focus on France11 July 2024Allianz ResearchOlympic Games AllianzTradeThe economics of hosting the biggest sporting event in the world2The Olympic Games Paris 2024 are just around the corner,and the fervor is already palpable.When I asked my team at Allianz Research whethe

2、r they wanted to do something on the economics of the Olympics(not the costs,which have unfortunately become Parisians latest obsession),there was a resounding yes.We all secretly dreamt of being an Olympian,of representing our country in the worlds most famous and historic gathering,and of upliftin

3、g millions of people through the higher moral values of participation,grit and surpassing oneself.Let me start by sharing where I find economic value in the Olympics.For me,the Games should remind us that globalization has always a local flavor,that together we are stronger,simply put:to“make trade

4、not war”,to quote my late friend Philippe Martins seminal paper in the Review of Economic Studies.The golden era of global trade may well be behind us:until recently,tariffs were going down and free-trade agreements going up.Sovereignty and strategic autonomy have now replaced open borders and partn

5、erships in most politicians roadmap.Trade may be more inflationary for people,and definitely more complicated for companies and investors.But,globalization is not dead,its just changing,and we will have to adapt.Since 2017,rising geopolitical tensions have made protectionism the new normal.Last year

6、,economies around the world implemented over 3000 trade barriers,five times more than in 2017.The upcoming US elections could ring in the return of the trade war,should Donald Trump secure a second term.Even if it will likely be more moderate and targeted this time around,it could still send US tari