OLYMPICS: Milan's economy expected to expand more rapidly in 2026 thanks to Games

Milan's economy is expected to expand more quickly in 2026, supported by a rebound in industry, strong services activity and the boost from co-hosting the Winter Olympics, according to a study released by regional business association Assolombarda.

The report forecasts GDP in Milan, Italy's financial capital, will expand by 1.7% this year compared with 0.7% growth in 2025.

The Olympic Games alone are expected to generate around 2.5 billion euros in total production in the metropolitan area of Milan, which equates to 1.045 billion euros in value added.

"Milan is experiencing a positive phase," Assolombarda President Alvise Biffi said.

"GDP is growing again at a solid pace, major events are strengthening the city's international visibility and tourism continues to expand," he added.

Biffi said the Winter Games were a “powerful catalyst” to boost the city's profile and accelerate urban transformation.

Milan has experienced a real estate boom since hosting Expo 2015, also fuelled by favourable tax rules that attract wealthy foreigners. However, some locals have complained they are being driven out of the city by rising costs.

Mayor Giuseppe Sala said the Olympics attract more media attention than Expo.

"We are delighted that so many foreign tourists have come. These are the most watched Olympics in history and will have a longer-term impact," Sala said without elaborating.

In Milan, the budget directly tied to the Games amounts to 735 million euros, split between 379 million for event-related or modernisation investments and 356 million for organisational spending.

The city is hosting nearly 90 indoor ice events, including the opening ceremony at the San Siro stadium.

Spending by visitors, athletes and staff is expected to reach around 1 billion euros locally.

-Giancarlo Navach/Reuters