§ Mr. Sillarsasked the Chancellor of the Exchequer what is his latest estimate of the consequences for the British economy of the trends in world trading conditions.
§ Mr. DellThe world recession in the first half of this year has been deeper than was foreseen earlier, and this has led to some decline—but fortunately not a commensurate decline—in United Kingdom export volumes. The timing of the recovery in world trade remains uncertain. There are already signs of an incipient upturn in the United States; but elsewhere recovery is likely to be more delayed. Even so, there remains a good prospect that world demand and trade will grow strongly during next year, and this should be reflected in a strong recovery in United Kingdom export volume. The new pay policy will help to make United Kingdom exporters more competitive, thus enabling them to take full advantage of the upswing.