A German economic institute said in a report today, that the impact of the FIFA World Cup on the German economy will not be significant.

DIW said that expectations with regard to the economic effects of the World Cup for Germany are high but exports had largely driven the country's recent economic improvement. Nevertheless, an increasing number of voices were arguing that the World Cup would boost domestic demand.

"But that will only happen if the World Cup leads to a sharp change in consumption and investment behaviour. And that is not to  be expected in this case," the report said. Football as a sector is very small, compared with the car and manufacturing sectors.

The report said that even leading makers of sportswear and equipment, such as Nike,  Adidas and Puma, which had annual sales of €20 billion worldwide in 2005, derived the lion's share of their sales from lifestyle apparel that, while sporty in appearance, was not exclusively sports equipment. DIW said this would be sold irrespective of the World Cup.

The report said the World Cup would generate a maximum of 9,000 new jobs, so it would have no long-term effect on the unemployment rate. The positive effects from investment in the necessary infrastructure, such as the renovation of old stadiums or the construction of brand new ones, would also remain limited, since spending was staggered over a number of years and had already been completed before the start of the tournament. DIW also queried the assertion that the World Cup would bring  in additional tourists into Germany.

Germany is the eurozone's biggest economy.