World Cup to deliver modest economic lift to Canada
BMO Economics estimates tourism spending between $1 billion and $5 billion, but warns the boost will be short-lived and not a foundation for longer-term growth.
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The 2026 FIFA World Cup will spur a short-term bump in Canadian GDP, driven by tourism and hospitality spending, though economists caution it won't be transformative.
BMO Economics estimates tourism gains between $1 billion and $5 billion, with resident spending adding $500 million to $1.5 billion. Combined, this translates to about 0.1 percentage points of annualized GDP growth split between the second and third quarters. The impact will be most pronounced in Ontario and British Columbia, where matches are being played.
"There are real economic effects from a large sporting event," said BMO chief economist Doug Porter. "But I don't think we should be under any illusion that it's anything other than a short-lived bump from the increased spending, and it tends to be relatively modest."
Bar and restaurant spending is expected to rise — data from the 2022 World Cup showed spending at those venues rose more than 10 percent. However, the report notes that most resident spending will simply shift money from other activities or other times, not generate new wealth.
The Canadian government is spending just over $1 billion to host the World Cup, with the federal contribution at $473 million. That averages to $82 million per game across Toronto and Vancouver. Porter noted that any growth "would be welcome and would be helpful given the fact that the Canadian economy has really struggled to grow at all in the past year."