Taylor Swift, Beyoncé, and the “Barbenheimer” fever are making a substantial positive impact on the United States economy. According to Bloomberg Economics, the tours of these mega stars and the success of their blockbuster films are projected to contribute a significant sum of $8.5 billion (S$11.5 billion) to the US economy in the third quarter.
The concerts alone, with nearly 50 shows scheduled, could boost the US gross domestic product (GDP) by $5.4 billion. Additionally, the films “Barbie” and “Oppenheimer” are anticipated to result in approximately $3.1 billion in consumer spending and export revenue from international ticket sales.
This combined effect is expected to lead to a 0.7 per cent increase in annualized real personal consumption expenditures and a 0.5 per cent rise in GDP during the July-through-September period. Economists Anna Wong and Eliza Winger have revised their growth forecasts for this period, attributing the adjustment in part to these notable gains. This economic outlook further reinforces the ongoing strengthening of the American economy, which has been evident in recent months.
The current economic landscape shows signs of easing inflation and a stable labor market, which are propelling consumer spending. This positive scenario is causing some economists to postpone their predictions of an impending recession, while others are reconsidering their projections altogether.
Nonetheless, the analysts at Bloomberg argue that the benefits generated by the movies and tours are temporary in nature. They highlight the absence of Beyoncé and Swift performances in the US during the last quarter of the year and describe the Barbenheimer event as a rare occurrence. Moreover, the US economy remains vulnerable to a drop in demand, and challenges persist in the housing market due to low supply and rising mortgage rates.
The Bloomberg economists emphasise that a significant portion of the current economic vigor is linked to short-term factors. In their assessment, These factors create a facade of robust consumption, when in reality, it is losing momentum. Importantly, their evaluation only accounts for ticket sales for “Barbie” and “Oppenheimer” up until Wednesday, and they do not include the net-export effects of the four concerts Swift is performing in Mexico City this week.