The “feel good factor” generated by the birth of the Royal baby could boost the economy by a quarter of a billion pounds, according to a leading City economist.
The combination of this week’s royal birth with the recent hot weather and Britain’s sporting triumphs could trigger a so-called “baby boom”, bigger than the boost from last year’s London Olympics.
George Buckley, chief UK economist at Deutsche Bank said it was a "reasonable conclusion" that the birth would improve the mood of consumers and lead to spending and growth. Before clarifying that, during the London Olympics, the main measure of consumer confidence barely moved, he said:
"Good news from a hot summer of sporting success, economic and social improvement and a Royal baby could add to confidence - and the recovery - going forward."
Other economists say impact of baby is likely to be "overwhelmingly positive", and it isn’t just confidence that is set to improve: the commercial value of the new arrival is enormous.
Fans of the Windsors have been buying everything from royal themed bibs and clothes for their own babies, to a ‘Royal baby paperweight’ and commemorative plates. It is also expected that high street shops will quickly begin selling more affordable versions of the Duchess of Cambridge’s blue polka dot dress, as seen on the steps of St Mary’s hospital - dresses previously worn by the Duchess have been known to sell out in a matter of hours.
The naming of the new future monarch is set to be the biggest non-sporting betting event in history, bringing in plenty of revenue for the bookmaking industry.
Buckley’s comments come ahead of the publication of the UK’s GDP growth figure for the second quarter of the year. It is expected to show growth of 0.6%, double that of the previous quarter.