UK

Royal Baby Boy: Economists Forecast £240 Million Economic Bump

23/07/2013 09:38 BST
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SANTA MONICA, CA - JULY 22: A baby announcement card and flags adorn the gift shop of Ye Olde King's Head English pub to celebrate the announcement of the birth of Catherine, Duchess of Cambridge, and her husband Prince William's first child, July 22, 2013 in Santa Monica, California. Kensington Palace announced that The Duchess of Cambridge gave birth to a baby boy with Prince William, Duke of Cambridge present for the birth. (Photo by Kevork Djansezian/Getty Images)

The Duchess of Cambridge’s newborn son could spark a £240 million boost in economic activity, analysts have forecast.

The royal baby was born on Monday at 4.24pm, but the announcement confirming it was not made until 8.30pm.

Howard Archer, Chief UK Economist at IHS Global Insight, said: “Any economic impact from the royal birth should be clearly positive, as there are no obvious negative economic repercussions of the happy event.

“The most obvious support to the economy coming from the royal birth will be some boost to retail sales through people buying souvenirs and commemorative items, while there is also likely to be a small lift to alcohol sales as some people will want to toast the Royal Baby.

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“There has also been a boost to the bookies through people betting on the sex of the baby and its name. However, even the boost to retail sales from the royal birth needs to be qualified by the possibility that the buying of souvenirs and commemorative items may be displacing some other discretionary spending. There may also be a limited “feel good factor”.”

This came alongside other UK forecasts which estimated the economic benefits. According to the Centre for Rretail Research, the ecnomy could stand to gain £240 million.

The estimate includes £87 million on celebrations and party supplies, £80 million on merchandise and £76 million on media including books, DVDs, magazines, and newspapers.

“This is a good news story and there really is no downside," CRR director Joshua Bamfield told Reuters. "People will have time to get involved, and that means additional spending."