A 'blessed event' for Britain's finances

Analysts estimate the royal birth will bring a $400 million boost to the UK's struggling economy.

By Bruce Kennedy Jun 20, 2013 7:14AM

Catherine, Duchess of Cambridge and Prince William, Duke of Cambridge at Buckingham Palace on June 15, 2013 in London, England (© Max Mumby/Indigo/Getty Images)Updated July 22, 2013


The wait is finally over. The former Kate Middleton has given birth to a boy who may end up as Britain's future king.


The new royal baby is third in line to the throne, behind his father and his grandfather.


And while the world is sending the new bundle and his family congratulations, the British economy is gearing up for a financial windfall.


The country's Centre for Retail Research is estimating the royal birth could bring a happy baby bounce of nearly $400 million to the struggling British economy.


"This is a good-news story, and there really is no downside," Joshua Bamfield, the Centre's director, told Reuters. Interest is high "across the Atlantic as well," he added, "as the younger royals are very well thought of in the United States, so we are expecting good sales of souvenirs."


Loyal Britons are expected to celebrate the royal birth with parties, festivities, souvenirs (must have that commemorative mug, china bowl and tea towel, after all), toys, books, children's clothing, DVDs and a variety of other media.


Along with the boost in retail spending, the impending arrival is helping tourism. Reuters reported a 13% rise in overseas arrivals to Britain in April.


Another big factor, Bamfield said, will be what he calls "unintentional royal brand endorsement."


"The 'Kate effect' has already taken the fashion world by storm," he told Reuters, noting how the Duchess of Cambridge, the former Kate Middleton and wife of Prince William, has become a style trendsetter. "And this trend will follow for the infant's baby gowns, rattles, first bike and so on."


The baby's great-grandmother, Queen Elizabeth II, was the first to get the news about the birth, USA Today reports. The royal family sent out an electronic press release first announcing the news, and then a framed announcement was posted at the gates of Buckingham Palace.

More on moneyNOW

187Comments
avatar

I am truly ELATED at the birth of William and Kate's baby boy.  How happy they must be!!!

 

Jul 22, 2013 6:36PM
avatar

People can do what they want to with their own money.  I see people buying lottery tickets who look

like they would be better off spending the money on essentials llke food and clothing.  But then it's their money to spend as they desire.   Congratulations to the Royal Couple on the arrival of their firstborn son.   Long lIve the British Monarchy.   Wish we had some class in Washington. 

Jul 22, 2013 6:48PM
Jul 22, 2013 6:53PM
avatar
Wow, some of you people are just mean spirited.  Why can't you be happy for something good in this world?
Jun 20, 2013 6:31PM
avatar
Its amazing the hatred out there for this young mother. Look at your Hollywood Royals that make Millions of all the poor people, that call this entertainment. And your own government is cleaning you out, worse than the British royals, and what to you get in return. Wars.
Jul 22, 2013 6:50PM
avatar
How the internet trolls can turn a healthy childbirth into negative news is beyond me.
Jun 20, 2013 5:44PM
avatar
People spending money they don't have to celebrate the birth of a child who they will never know- sounds about right.
Jul 22, 2013 6:54PM
avatar
No matter how many problems (or earlier wars) between the UK and the US, there will always be a bond between them. A good portion of us can trace at least a portion of our bloodline to the UK! People will always be fascinated by the British Monarchy and what does it hurt! A little happy news in a world full of bad news.
Jul 22, 2013 6:47PM
avatar
I'm really happy for the Royals! I bet Kim Kardashian will finally be coming out with her baby now. We all know how jealous she is and how she wants ALL the attention!!
Jul 22, 2013 6:59PM
avatar
The economy only works when you spend money, stupid.  Congrats to the happy family, and to the UK's sagging economy.  Unlike us, they didn't give all their money to the banks.
Jun 20, 2013 6:07PM
avatar
I think that people will be spending alot of money on baby and later childrens' clothes' and toys' that are similar to what the royal child has for their own children. It happens in America too. Remember the coats that the little Obama girls' wore for their father's presidential innauguration back in 2009. I saw immitations of the jackets in the Sears girls clothing department. Also sleeveless dresses' for women came into style because of the first lady. Sadly their election did nothing for our economy except create certain clothing styles. Who can say what will happen with the birth of the royal baby in that respect.
Jul 22, 2013 7:06PM
Jul 22, 2013 7:06PM
avatar
OK, here we have it, the monarchy is steeped in tradition since it's inception.  England isn't the only European country with a monarchy, it's just the most famous.  Of course it cost their tax payers MILLIONS OF POUNDS per year.  When Diana came into the picture, along with her sons, she practically single handedly brought the monarchy out of the stone ages, to a place of being hip and cool.  Both Diana (past) and Kate serve the monarchy for MANY wonderful charities as well as events that show case the royal family.  Does no one remember that Diana spent a great deal of her time fighting for the people and children who were mamed and killed by land mines?  How about HIV and AIDS?  She was constantly visiting children's hospitals where she made the day of a sick or dying child a little brighter.  Kate is following in those foot steps as well.  Both William and Harry serve their countries military.  Why is there trash talk about them?  Envy, simple Envy!  I hope William and Kate live long, love long and enjoy a marriage and family life that doesn't mimic the marriage of Charles and Diana.  The british people adore their monarchy.  It would be GREAT for England if they skipped Prince Charles and have William become the next King.  Prince Charles does NOT exemplify the modern ideals that England is trying to move towards.  The prim and proper grounded traditions embraced by Queen Elizabeth and Prince Charles just aren't what the modern population of England desires.  They need the fresh and modern views I think Willliam is more capable of bringing to the modern day monarchy.  Guess we have to wait and see.  Congratulations William and Kate.
Jun 20, 2013 1:35PM
avatar
I think the young royals today have been a boon to the economy already.  I'm sure there is plenty of money spent just buying the tabloids for the latest dirt on them, especially Prince Harry.  It will be the same for Duchess Kate and Prince William once the baby arrives.
Jul 22, 2013 7:17PM
avatar

Honestly....No man or woman is Royalty, were all the same folks!

Jul 22, 2013 7:05PM
avatar
The Brits love their royal family because it has and always will bring back a lot more money then it takes out.  And our 1st family has cost us more in 4 years then the British monarchy to Brittan.
Jul 22, 2013 6:39PM
avatar

well, proves the royals still serve some tangible purpose.

 

poor charles was passed over entirely.

 

the smiths wrote 'the queen is dead' back in 1983...and she's still on the thrown!

 

talk about a long run.

Jul 22, 2013 6:33PM
avatar
If Obama had a baby, he'd look like this kid.
Jul 22, 2013 7:10PM
avatar
how does a new born of royalty bring in 400 million dollars people are really brain washed over there aren't they oh what was I thinking there brain washed over here to what a joke didn't we kick there **** about two hundred thirty seven years ago are so why do we care
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] The stock market finished the Wednesday session on an upbeat note with the Nasdaq (+1.3%) ending in the lead. The S&P 500 settled higher by 1.1% with all ten sectors posting gains.

The benchmark index spent the entire trading day in the green, rallying to new highs during the last hour of action. The tech-heavy Nasdaq, meanwhile, briefly dipped into the red during morning action, but was able to recover swiftly.

Stocks began the trading day with modest gains ... More

MSN MONEY'S