Belfast Telegraph

Royal birth may not herald economic growth spurt for UK

By David Elliott

While the Royal birth has been the trigger for widespread media coverage over the past few days, don't expect it to have an impact on the UK, warns PwC.

Indeed, the economy business advisors believe even a near-term boost is unlikely.

"The royal birth won't change the growth outlook for the UK economy greatly, even in the short term," said the firm's senior economic advisor Andrew Sentance.

However, Mr Sentance, who is also a past member of the Bank of England's Monetary Policy Committee which sets interest rates, said that economic performance following previous Royal births does bode well.

He added: "It's worth noting that the last two long periods of strong UK growth followed the birth of Prince Charles in 1948 and Prince William in 1982."

And with recent economic indicators suggesting that the worst of the economic downturn could be over, the latest Royal birth could be well-timed, or may at least precede more prosperous times. Mr Sentance said: "We're not expecting a quick turnaround in the economy in the next few years but it's a reminder that once the negative effects of the financial crisis have started to fade, the UK economy could enter a new more sustained growth phase later this decade."


The last time a royal birth preceded strong economic growth

Belfast Telegraph