Victory at "Eurovision": Does it bring economic growth to Bulgaria?

The impact of Eurovision on the stock market

A victory for Bulgaria at Eurovision would certainly bring joy, but could it also move the markets? According to a study by researchers at Bar-Ilan University, the stock market in the winning country often sees a gain of about 0.35% in the first session after the contest. The researchers attribute this phenomenon to national pride, which leads investors to be more optimistic.

"Investors are human too, and when their country wins, they buy," note analysts from the platform BlueSky Thinking.

Voting as an economic indicator

Scientific research shows that "bloc" voting in the contest is not just about musical preference, but a measure of "social proximity." Data point to a statistically significant correlation between countries that support each other at Eurovision and the number of cross-border mergers and acquisitions between them.

The lesson from ABBA's success

The story of ABBA is proof of how a Eurovision success can transform an entire nation's economy:

• In the 1970s, the group became the second-largest source of export revenue for Sweden.
• Investments in recording studios laid the foundations for the Swedish music industry.
• The success paved the way for Stockholm as a global hub for musical innovation, including the emergence of Spotify.

Although not every victory leads to an economic renaissance, the example of ABBA shows that talent combined with good infrastructure can change a country's economic geography.