Growth up 5.5%, says Pruaitch
 

THE economy is in its fifth year of successive growth, Treasurer Patrick Pruaitch told Parliament when handing down the Supplementary Budget.
In his budget statement, Mr Pruaitch said the revised Mid-Year economic and Fiscal Outlook Report expected economic growth this year up by 5.2% from 4.5% forecast in the 2007 Budget.
“The good news is that there are signs of growth picking up across most sectors of the economy.”
Minister Pruaitch said economic growth in 2007 was now expected to be even higher than the mid-year forecast and will be the highest since 1996, well outpacing population growth rate of 2.7%.
“This growth has real potential to increase income and raise the standard of living for many people.
“It also reflects increased business confidence, higher employment growth, stronger investment activities and higher business profits.”
He said the improved economic growth stems from a combination of political stability, prudent macroeconomic policies, low interest and inflation rates, as well as the higher international prices for the country’s major commodity exports.
On the Government’s fiscal position, Mr Pruaitch said fiscal and debt position had improved significantly.
“The budget has been in surplus over recent years and the Government’s total debt has declined from 72% of GDP in 2002 to 39% of GDP at the end of last year and is moving towards a sustainable level.”
Mr Pruaitch said the Government had handled the surge in revenue associated with the commodity price boom well by maintaining recurrent expenditure at sustainable levels and using the windfall revenue to provide for the future by spending on one-off infrastructure investments and by repaying debt.

Type In Your Name:

Type In Your E-mail:

Your Friend's E-mail:

Your Comments:

Receive copy: