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LONDON, Dec. 6 (Xinhuanet) -- Gordon Brown, the Chancellor of the Exchequer of Britain,
who had forecast the economic growth to be at 3 and 3.5 percent, halved his
prediction on Monday, complaining that UK has had a "tough year".
In his pre-budget report to the parliament, Brown slashed his estimate of
growth in 2005 to 1.75 percent, and said that the UK economy is passing
stability test.
Brown's new prediction of the country's growth is only half of the figure
the chancellor predicted it would be in March.
But he told MPs the UK economy had "remained stable despite much higher oil prices,
slower house price rises and high security costs."
He said employment had grown and inflation remained low, and predicted
economic growth of 2 to 2.5 percent next year and 2.75 to 3.25 percent in 2007.
The chancellor said, however, that "this year we have seen ... growth even
in this toughest year at 1.75 percent, the 34th quarter of continued growth with
low inflation."
There was much jeering from opposition MPs at this stage because in his
Budget in March Brown forecast growth of 3 percent to 3.5 percent for this year
and 2.5 percent to 3 percent next year.
UK's economy chalked a 3.1 percent growth in 2004.
Brown said inflation was to meet its 2 percent target this year, next year
and the year after that.
He said National Health Service pay should rise in
line with the 2 percent inflation target and the total increase in the education
pay bill should be 2.8 percent, as part of the government's effort to keep the
lid on public sector pay. Enditem |