Economic impact of 2025 Expo raised to $19b

The Japanese government said Friday it now estimates the economic impact of the 2025 World Expo to reach about 2.9 trillion yen ($19 billion), up 400 billion yen from the previous projection, due to inflated costs.

According to Kyodo News, 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 labour costs, for example.

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.

The World Expo, will be held from 13th April to 13th October on Yumeshima, a man-made island in Osaka Bay, western Japan.