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Trend Growth Assumption

Volume 456: debated on Friday 2 February 2007

To ask the Chancellor of the Exchequer pursuant to paragraph A.34 of the pre-Budget report, what factors were taken into account in determining that the trend growth assumption remained at 2.75 per cent. of GDP. (110630)

Analysis underpinning the revision made to the trend growth assumption in the 2006 pre-Budget report is set out in the paper ‘Trend growth: new evidence and prospects’, published alongside the pre-Budget report. This paper is available on HM Treasury’s website:

http://www.hm-treasury.gov.uk/media/53D/CE/pbr06_trend growth_345.pdf