Maintaining a stable economy
The UK economy performed strongly last year, with growth faster than in the US or euro area, and employment increasing by nearly 300,000 through the year.
The disruption to financial markets that began in the housing market in the US has created an uncertain outlook for the global economy.
The Government's economic reforms have put the UK economy in a strong position to deal with the current economic challenges. These reforms have meant that the economy is more resilient when faced with challenges like these.
The projections in this year's Budget show that:
- the economy is expected to grow by 1 ¾ to 2 ¼ per cent in 2008, and by 2 ¼ to 2 ¾ per cent in 2009, and 2 ½ to 3 per cent in 2010;
- inflation is set to remain low and stable; and
- the public finances remain sound despite the impact of financial market developments, with borrowing expected to be £36 billion in 2007-08, £43billion in 2008-09 and £38billion in 2009-10.
The number of people in work
