Britain's Duchess of Cambridge delivered a baby boy Monday afternoon, an event analysts said would be "overwhelmingly positive" for the U.K. economy.
The child of the Duchess of Cambridge Kate Middleton and Prince William will be third-in-line to the throne. Middleton gave birth in the private wing of Saint Mary's hospital in London.The boy, whose name was not immediately revealed, weighed 8 pounds, 6 ounces.
"The impact on the U.K. economy is likely to be limited — albeit overwhelmingly positive. At the margin, the royal birth may provide the economy with a temporary, small positive boost at a time when it seems to be increasingly moving in the right direction," Howard Archer, chief U.K. and European economist at IHS Global Insight, said in a research note.
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According to the U.K.'s Centre for Retail Research (CRR), the royal birth will boost retail sales by £243 million ($372 million) between July 1 and August 31. The Centre forecast that £87 million ($133 million) would be spent on food and alcohol for parties to celebrate the birth, while £156 million ($239 million) would be spent on memorabilia.
"The most obvious support to the economy coming from the royal birth will be some boost to retail sales through people buying souvenirs and commemorative items, while there is also likely to be a small lift to alcohol sales as some people will want to toast the royal baby," said Archer.
In addition, the CRR forecast that sales of prams and pushchairs will rise by 13 percent, as parents upgrade their own in order to match the royal baby's.
"The baby carriage will become a must-have status symbol and the lucky manufacturer can expect a similar boost in sales to that achieved by iCandy peach when Victoria Beckham adopted one for her daughter Harper," the CRR said.After Beckham's purchase, sales of iCandy's grew to £9.6 million in 2011, up from £3.6 million in 2009.
U.K. retailers are already familiar with the "Kate effect", with sales of anything that Middleton wears or uses soaring. For instance, when Middleton wore a nude "bandage" dress by Reiss to visit the White House, the brand was propelled onto the international stage, and is now stocked at Bloomingdale's.
(Read More: Retailers Jump on Kate's Baby Fashion Bandwagon)