Taylor Swift: Driving US economic growth and consumer spending

Taylor Swift: Driving US economic growth and consumer spending

According to a report by www.finanzen.net,

After the US Federal Reserve mentioned Taylor Swift in its economic outlook, the US superstar is also in the sights of other market participants. In particular, Swift's billion-dollar tour may have contributed to the fact that a recession in the USA has so far been avoided.

Taylor Swift is known for her massive fan base who call themselves “Swifties.” This fan base generates gigantic sales, especially through Swift's current tour with 131 concerts worldwide. Concert tickets are trading at premium prices and fans are spending extra money on travel, accommodation and merchandise, which has a positive impact on consumer spending.

According to the Federal Reserve report, Swift's concerts contributed $140 million to gross domestic product in Denver alone. Taylor Swift's "Eras" tour could generate $4.6 billion in total consumer spending, according to think tank Common Sense Institute.

Additionally, Taylor Swift's presence at Kansas City Chiefs games in the NFL has a positive impact on tickets and the NFL's broader momentum. Other sectors of the economy such as the handicraft industry are also benefiting from the Swift hype.

This huge consumer spending, driven in part by so-called “revenge spending” by U.S. consumers in the wake of the pandemic, has helped the U.S. economy avoid a recession so far. The gross domestic product has risen and the stock market is also surprisingly robust.

It remains questionable whether the current hype surrounding Taylor Swift and the “revenge spending” is sustainable enough to provide long-term support for the US economy. It is expected that spending control will improve and that the huge consumer spending will not be maintained at an undiminished level. The specter of “recession” is not yet off the table for many market participants.