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Recent estimates have suggested that the London Olympics will boost the UK economy by around 0.2%. This is mainly due to new infrastructure and increased tourism. There is also the prestige of holding the olympics. There are of course significant downsides when it comes to cost (which will have to paid off), environmental damage (Mayor Boris Johnson suggested knocking down the stadium after the olympics) as well as potential gridlocking in areas during and before the event (due to construction and increased activity around popular events). Racial tensions may well increase during that time which would another negative effect.
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