Analysts said that effect of the birth of a son to the Duchess of Cambridge to the UK economy will be "overwhelmingly positive." High foreign media coverage plus no public holiday will certainly help raise economic activity in the country, at least for some time.
However, the impact will be quite limited and may only be a "temporary, small positive boost," according to a note of Howard Archer, chief UK and European economist at HIS Global Insight. In addition, the economic boost will not be as much as those provided by the royal wedding of 2011 and the Queen's diamond jubilee in 2012.
"There will also likely be few, if any street parties that the diamond jubilee and the royal wedding encouraged, so the boost to food and alcohol sales will likely be much more limited... another significant difference... is that there will not be the great pageantry and celebratory public events, which likely had some beneficial impact in lifting tourism," stated Archer.
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