British Chancellor Gordon Brown has told the House of Commons that the country's economy will grow by 3.25% this year, in line with earlier forecasts.
In his pre-budget report, Brown also forecast growth of 3% to 3.5% in 2005 and welcomed the 'longest period of uninterrupted growth in the industrial history of our country'.
He also told parliament that borrowing would be slightly higher than he forecast in his March budget, saying Public Sector Net Borrowing (PSNB) would be £34 billion in 2004/2005 and £33 billion in 2005/06. In March, he predicted borrowing levels of £33 billion and £31 billion respectively.
But Brown said the UK deficit as a proportion of GDP was 2.9% for 2004, and was lower than in Germany, France, the US and Japan.
Brown said inflation was expected to remain low, at 1.25% this year, rising to 1.75% in 2005.
He said an expected moderation in house price inflation was now under way and he forecast consumer spending would grow by 3.25% this year.
