Pre-Budget Report 2004 Summary Leaflet | Maintaining a stable economy

			Pre-Budget Report 2004 Summary Opportunity for all: The strength to take the long-term decisions for Britain


	Homepage Overview Maintaining a stable economy Promoting productivity and enterprise Employment opportunity for all Building a fairer society		Delivering high quality public services Protecting the environment Where taxpayers' money is spent Get in touch Visit HM Treasury Site

The world economy has strengthened in 2004 following downturns in many major countries over the past four years, though a number of risks remain. The Government's economic reforms have helped the UK to maintain macroeconomic stability and continue to grow throughout this challenging period for the global economy. The Pre-Budget Report shows that:

the economy is expected to grow by 3¼ per cent in 2004 and by 3 to 3½ per cent in 2005;
inflation is set to remain low and stable; and
the public finances remain sound and the Government is meeting its strict fiscal rules. Borrowing will be £34 billion this year and debt is lower than the US, Japan, Italy, France and Germany.

The global economy is experiencing a period of far-reaching and fundamental change, driven by advances in technology, greater international trade and investment, and rapid growth in many emerging markets, particularly China and India. These changes have the potential to bring great increases in global prosperity. The Government is committed to long-term reforms aimed at ensuring the UK is well-placed to prosper in the changing global economy, by promoting a stable economy which is flexible, enterprising and strong in innovation and skills.