Royal Baby & UK economy

The Duchess of Cmabridge has gone into labor is the news we have been hearing since this morning. It won’t be long now till the baby arrives and journalists and reporters have been waiting outside the St Mary’s Hospital for days hoping for this moment. So I think it’s about the right time for us to talk about this royal heir. And as economic students (prospective and current), let’s see how the arrival of this royal member would affect British economy.

According to CNN news, the royal birth is to pump approximately £240 million into the economy. This is due to the sales of Union Jack pacifers or even “I heard my Uncle Harry” bibs… Of course about a quarter of these bump is from sales of alcohol as people are expected to pop around 3 million bottles of Champage and wine to celebrate the future heir. For a while now, we have seen sourvenirs and collectables such as children books being sold by British retailers. All of these figures are remarkable, in my opinion. Although I think they all seem to make sense. Upon the wedding of the Duke and Duchess of Cambridge, the boost to the economy was even estimated to be around £500 million.

But the craze wouldn’t just stop there. We have already seen the “Kate effect” which has taken the fashion world by storm. Whatever outfit she chooses is bound to fly off the shelves as soon as it hits the market. So this time as well, mothers – to-be would be looking for the normal baby product that the Duchess chooses to outfit the heir in.

This royal baby mania is not just going to be around the birth time only. According to CRR (Centre for Retail Research)’s director, sales of prams, or strollers, are expected to rise by 13% in the year following the royal birth. This is because the culture of “keeping up with Cambridge” is spreading to the baby goods world.

So that’s my update upon this news. We shall now all wait to celebrate the birth of the prince or princess of Cambridge.

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Alisa L

About Alisa L

Alisa graduated in the Summer of 2014 and is no longer blogging for this site. Alisa, a student from Vietnam, blogged about her third year of BSc Financial Economics and her time as a Course Representative.

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