Macroeconomic stability
The British economy has grown for 60 consecutive quarters and inflation remains low. This stability puts Britain in a strong position to respond to global economic challenges and to take advantage of the opportunities of the coming decade. The 2007 Pre-Budget Report and Comprehensive Spending Review sets out that:
- the economy is expected to grow by 3 per cent in 2007, and by 2 to 2½ per cent in 2008;
- inflation is set to remain low and stable at around 2 per cent; and
- the public finances remain sound, with borrowing forecast to be £38 billion in 2007-08 and set to fall in every year for the next 5 years of the projection, and with debt lower than in the US, Japan, and the euro area.
