Next week’s Bank Holiday for the Queen’s funeral could help tip the UK into recession, experts have predicted.
The warning came after it emerged Britain’s economy grew by just 0.2 per cent in July, less than analysts had expected.
It followed a contraction in June, which economists put down to the Bank Holiday weekend for the Queen’s platinum jubilee.
A recession is defined as two consecutive quarters of negative growth.
King Charles III confirmed on Saturday that the UK will be given a Bank Holiday for his mother’s funeral next Monday.
Analysts said the move, coupled with the 10 days of national mourning following the Queen’s death, could be enough to send the UK into recession more quickly than expected.
The Bank of England has said it expects a recession by the end of the year.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the Queen’s funeral could impact economic growth by 0.2 per cent.
“The hospitality and tourism sector likely won’t benefit, but many businesses still will shut,” he said.
New prime minister Liz Truss has previously insisted the UK can defy expectations by avoiding a recession.
She has vowed to cut taxes, and last week - before the Queen’s death - unveiled a multi-billion pound package capping typical energy bills at £2,500 for the next two years in an attempt to get people through the cost of living crisis.