It was a cruel summer for the Australian economy, but Swiftonomics delivered a small but welcome boost.
US superstar Pink’s tour and the Australian Grand Prix, held in Melbourne in March for the first time since 2019, were also singled out by the Australian Bureau of Statistics as boosts to national economic activity, after the latest gross domestic product data was released on Wednesday.
While the economy grew by just 0.1% between January and March – the weakest quarterly growth on an annual basis since December 2020 – that figure camouflages moments of economic buzz generated by international entertainers and sportspeople.
Australians bought more than 600,000 tickets for the local leg of Taylor Swift’s Eras tour, which came to Melbourne and Sydney in February. Pink, whose Summer Carnivals concerts toured seven cities across Australia in February and March, was also part of the effect.
Over that time, arts and recreation services rose 2.7%, “driven by record attendances at large music and sporting events across major cities”, the ABS March quarter report stated.
Accommodation and food services were down 1.5%, a figure that “experienced a boost from several large-scale sporting and music events being held during the quarter”.
Katherine Keenan, ABS head of national accounts, said the events added to household spending over the period.
“Spending on [Taylor Swift, Pink and the Melbourne grand prix] contributed to the overall rise in household spending, benefiting the accommodation, catering, and arts and recreation industries in Victoria and New South Wales”, she said.
Swift’s impact on retail alone saw the sector turnover rise 0.3% in February 2024 – a figure that would have been lower had the Eras tour not come to Australia, said Ben Dorber, ABS head of retail statistics.
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“Seven sold-out Taylor Swift concerts in Sydney and Melbourne boosted retail spending this month, with over 600,000 Swifties flocking to these events. This led to increased spending on clothing, merchandise, accessories and dining out,” he said in March.
“Looking past the temporary and one-off impact of the Taylor Swift concerts, underlying growth in retail turnover was up only 0.1% in trend terms.”
Business Sydney forecast the star’s impact to deliver a $113m windfall, while an RMIT estimate rounded her national impact to more than half a billion dollars.
Her economic effects have been seen elsewhere, including Singapore and the US, where Swift’s tour has been linked to inflation. In the UK, it is predicted to boost the economy by $1.27bn.
