Bank holiday warning for UK’s growth

The Queen’s Diamond Jubilee is expected to knock economic growth in the UK, economists have warned, despite the expected boost to retail and tourism.

The extra bank holiday on June 5 could result in a more than 0.5 per cent reduction in gross domestic product (GDP) growth in the second quarter of this year.

The celebrations will come at a time when the UK economy is struggling to recover – and depending on how well it fares in the first quarter of this year could again be in recession. In the final quarter of 2011, it declined 0.2 per cent.

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Last year, the additional bank holiday for the royal wedding between the Duke and Duchess of Cambridge was found to have hit growth in the second quarter by up to 0.5 per cent.

But the financial impact of the jubilee, as with the wedding last April, will be partially offset by a boost to hotel trade, alcohol sales and souvenir merchandising.

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