Jubilee weekend: the impact on the economy
Most of us will be taking an additional day off work for the Queen's Diamond Jubilee, but will the lost working hours prolong the recession or provide a fillip to the flagging retail and leisure sectors?
As revealed in the Bank of England’s May inflation report, the double bank holiday is expected to knock 0.5 percentage points off Q2 GDP, hindering efforts to bring the economy out of recession as the Eurozone crisis worsens.
Last year a bank holiday for the Royal wedding hit output by 0.4%, but overall the economy was able to recover, as is hoped with the impact of the London Olympics which is expected to offset the fall in Q3.
Mervyn King told the House of Lords Economic Affairs Committee in March that the Jubilee celebrations would have a similar impact on the economy to last year’s wedding when recovery stalled.
The BoE’s chief economist Spencer Dale added this month that, “The Jubilee will have a slightly bigger effect, in part because it’s happening in June rather than April, so the ability for companies to make up that output within the quarter will be that much less.”
Last month the Centre for Economics and Business Research (CEBR) calculated that the average bank holiday costs the economy £2.3bn.
Editor's blog: How will you spend the Jubilee weekend?
Let us know what you think the impact of the double bank holiday will be on your business or sector.