Jubilee Celebrations Could Push UK Economy Into Recession

by Tom Sykes Mar 29, 2012 9:40 AM EDT

Most people would think the Jubilee celebrations would provide economic stimulus, but the Bank of England disagrees

Celebrations for the Queen's Diamond Jubilee could tip the British economy into recession again, Bank of England Gov. Sir Mervyn King has warned.

He was asked about the impact of the Jubilee holiday as he appeared before the House of Lords economic affairs committee yesterday. The U.K.'s May public holiday has been moved to Monday, June 4, and the next day has also been designated a day off to mark the event.
The governor said: "We do expect quite possibly a fall in output in the second quarter, followed by a rise in the third quarter, as we will lose an extra day's work–it doesn't necessarily follow that we will lose that whole day's output–because of the national bank holiday."

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Tom Sykes is a writer and journalist, and he edits The Royalist blog for the Daily Beast. Tom has worked for many publications, including a stint as a nightlife reporter and gossip columnist for the New York Post. He has written several books, most recently helping John Taylor of Duran Duran write and edit his autobiography, published by Dutton. Tom lives in London and Ireland.

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About the Author

Tom Sykes

THE ROYALIST, updated several times daily, reports on all aspects of the British Royal Family. With breaking news and the latest gossip, great pictures and informed commentary, the Royalist is essential eyeballing for fans of the world’s most famous family.