The Financial Times has refuted claims that the the hullabaloo about the birth of George Windsor will give a worthwhile boost to the British economy.
The Centre for Retail research had said that the birth would increase retail sales by £243m in a period of nine weeks.
In the Wednesday edition of the newspaper economics editor Chris Giles wrote that if “the ludicrously precise estimates from the Centre for Retail Research are accurate” AND all the additional spending is on British goods and services, GDP might be increased by 0.06% in a quarter. He called such an increase “puny”.
Mr. Giles pointed out that any additional Windsor-related expenditure by Britons might just take take money away from spending on other goods or services. Or be on imported items such as French champagne. Such increases in spending would do the British economy no good at all.
The FT journalist noted one consoling aspect. The birth celebrations will not reduce GDP in the way the Windsor marriage and “jubilee” of recent years did, as there will not a an additional public holiday.