July 21, 2024

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How Taylor Swift’s Eras Tour Might Affect Europe’s Economy

2 min read

It’s not just Taylor Swift fans keeping a close eye on her Eras Tour dates. One of Europe’s most prominent economists is acutely aware that the singer is spending the summer jetting between Europe’s stadiums.

Philip Lane, the chief economist at the European Central Bank, had the pop star on his mind when he spoke at an event on Monday. The interviewer had asked him about the risk that stubborn inflation in the services sector could intensify, especially with Europe heading into a particularly busy summer with the Olympics in Paris and the Euro 2024 soccer championship in Germany.

“Well, that’s very interesting,” he said at the event. “You managed to say all that without saying Taylor Swift.”

Ms. Swift is touring Europe this summer, bringing in her wake hundreds of thousands of Swifties spending on airfare, hotels, restaurants and friendship bracelets. On Friday, she will perform the first of eight shows at London’s Wembley Stadium; about 700,000 people are expected to see the show in the British capital. And analysts are debating the economic footprint it will leave.

Economists in the United States know that Eras is an economic tour de force. As consumers splurged on concerts, meals, vacations and other recreational experiences they missed out on during pandemic lockdowns, one company estimated that the tour could generate $4.6 billion in North America alone from spending on tickets, merchandise and travel.

Central bankers are justified in scrutinizing the potential inflationary effects of the arrival of a global superstar: In May last year, when Beyoncé kicked off her Renaissance World Tour in Stockholm, an economist attributed a blip in the inflation data to the singer’s concert, as fans traveled from afar to witness the first show.

Europe’s central banks have started to cut interest rates — or are poised to — as inflation has slowed substantially over the past year, putting their 2 percent target rates within sight. But there are…

Eshe Nelson

2024-06-21 00:00:51

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