Budget 2002: Economic Analysis: ECONOMIC FORECASTS: Growth Forecasts Are Raised Although Economists Doubt Long-Term Claims

Thornton, Philip, The Independent (London, England)

THE BRITISH economy has weathered the worst shock in a decade and is now estimated to be growing even faster than previously thought.

Gordon Brown upped his forecasts for the next couple of years and - in a highly significant move - the estimates of the long-term growth rate.

The Treasury now believes that the trend rate of growth is 2.75 per cent, rather than 2.5 per cent. As a result, the Government will now use growth of 2.5 per cent, rather than 2.25 per cent, when putting together the public finances.

In a crucial move, the Chancellor has decided to stick with his confident forecast for growth this year of 2 to 2.5 per cent that he gave in …

Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: Budget 2002: Economic Analysis: ECONOMIC FORECASTS: Growth Forecasts Are Raised Although Economists Doubt Long-Term Claims. Contributors: Thornton, Philip - Author. Newspaper title: The Independent (London, England). Publication date: April 18, 2002. Page number: 13. © 2009 The Independent - London. Provided by ProQuest LLC. All Rights Reserved.

This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.