The death of Queen Elizabeth has come at a bad time for the United Kingdom.
In the midst of soaring inflation, a collapsing currency, and the worst cost-of-living crisis in decades, the country has lost one of its few beacons of continuity and stability.
The government of Prime Minister Liz Truss, who announced a massive economic rescue plan just two days after taking office and just hours before the Queen died, has declared a period of national mourning that will last until the day of the state funeral.
Some stores and sporting venues were closed out of respect, but for the most part, life went on as usual. London’s financial markets opened on Friday, with stocks rising in line with other European and Asian markets.
The London Stock Exchange said trading would resume during the period of mourning. It will only be closed for the funeral, the date of which has yet to be determined but is expected to be a public holiday.
Selfridges, one of the country’s oldest department stores, announced the closure of its stores in London, Manchester, and Birmingham, but said they would reopen on Saturday.
Meanwhile, labour unions provided some relief from the recent wave of strike action. The Communication Workers Union called off a planned strike by 115,000 Royal Mail postal workers on Friday. Transport unions also cancelled planned rail strikes for next week and later this month.
While the British Academy of Film and Television Arts cancelled its annual pre-Emmy event this weekend, London’s West End theatres remained open.
Holger Schmieding, chief economist at Berenberg, a private bank, the economic impact of the Queen’s death will be “minor.”
“Calling off the disruptive rail strikes for now should partly offset the impact from the days of mourning. Additional tourist revenues will probably contribute to that,” he said.
Economic recovery compromised?
The monarch’s death was announced just hours after Truss announced plans to cap Britons’ energy bills beginning in October, providing relief to millions of households and thousands of businesses struggling to keep up with rising prices.
According to Berenberg analysts, the rescue package could cost up to £150 billion ($172 billion) and would be funded primarily through government borrowing.
Finance Minister Kwasi Kwarteng is expected to confirm the cost of the plan later this month.
However, the government’s focus may now shift to the events of the coming days as it prepares for the Queen’s funeral and the coronation of her successor, King Charles. Normal parliamentary business has also been halted for the next few days.
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