World Expo 2025: Economic impact raised to $19bn amid inflated costs
The Japanese government said it now estimates the economic impact of the 2025 World Expo to reach about 2.9tn yen ($19bn), up 400bn yen from the previous projection, due to inflated costs.
According to a Kyodo News report, the Ministry of Economy, Trade and Industry revised its calculation for the new estimate, based on Japan's planned spending of up to 235bn yen for constructing the expo venue in Osaka amid high material and labour costs, for example.
The new figures are based on a calculation conducted in February, revised from the previous one carried out in March 2018.
The estimate back then for constructing the venue stood at 125bn yen, about half of the latest projection for spending.
The ballooned construction costs will be split among the three parties -- the central gov
ernment, the Osaka prefectural and city governments and the business community.
Under the 2.9tn yen estimate, the ripple effects of the construction investment are now projected to be 857bn yen, up from 590bn yen previously, while those of the operational costs and expenses linked to the global event would be around
680bn yen, up from 630bn yen.
The ripple effects of spending by expo visitors are also estimated to rise to about 1.38tn yen from 1.29tn yen due to the revision.
The World Expo, will be held from April 13 to October 13 on Yumeshima, a man-made island in Osaka Bay, western Japan.
A total of 161 countries and regions and nine international organisations have confirmed their participation in the Expo as of March 14, according to the Japanese Foreign Ministry.
The 2025 World Expo in Osaka will exhibit a dome made out of a new form of carboncapturing concrete with the potential to make a significant impact in cleaning up the construction sector, which currently accounts for around 40% of greenhouse emissions globally.
The special concrete hardens by capturing CO2 in the air and will reduce CO2 emissions in its construction phase by 70% compared with a structure built with conventional concrete, according to construction firm Kajima Corp.
The construction of the 5.45meter tall, oval-shaped dome with a width of up to 23 meters comes as the government aims to achieve net-zero emissions by 2050.