World Cup win could translate into positive expectations for economic crisis-prone Argentina

As Argentina won its long-sought third FIFA World Cup title, the win could translate into positive expectations for the economic crisis-prone country.

While Argentina was better placed than France to reap the economic benefit of winning sports' most precious prize, the impact is likely limited to an extra 0.25 percentage point of economic growth in the two quarters following the tournament, reports Bloomberg.

Due to increased consumption, the triumph will probably add only a minor boost to growth, said Argentine officials.

The World Cup victory adds to an incipient improvement in economic mood in the country where football is followed like religion, and as it approaches presidential elections set for October – the FIFA World Cup title will play a role in the country regardless of the measurable impact of the win.

Argentina's economy is expected to grow over 5% this year. November's monthly inflation data was the lowest since February, and the International Monetary Fund's board just approved the latest revision of the country's $44 billion programme.

The South American nation's macroeconomic framework continues to be unsustainable, with annual inflation close to 100%, interest rates at 75%, the country locked out of international credit markets and multiple exchange rates complicating day-to-day transactions.

An expected slowdown in growth next year will add to the economic hardship, with poverty hitting around 40% of the population.

"The strong deterioration of the macroeconomic context, with inflation near three-digit levels, might be generating a higher tolerance for reforms," Pilar Tavella, an economist at Barclays Plc, recently wrote in a research note.

"Chances of political change seem high regardless of candidacies," Tavella added.