§ Mr. Ridley
asked the Chancellor of the Exchequer what are his estimates for gross domestic product at market prices and at factor cost in 1975–76 and 1978–79 on which are based the calculations referred to in paragraph 52 of Command Paper No. 6721; and whether the rate of increase he expects between those years is about 2½ per cent. per annum.
§ Mr. Joel Barnett
The gross domestic product at market prices and at factor cost in 1975–76 is estimated to have been £108.6 billion and £97.4 billion, respectively, at current prices. My right hon. Friend indicated in the Letter of Intent of 15th December 1976 to the International Monetary Fund that the objectives for the PSBR were based on expectations of an increase in GDP between 1976–77 and 1977–78 of 2 per cent. and between 1977–78 and 1978–79 of 723W 2½ per cent. to 3 per cent. The rate of increase between 1975–76 and 1976–77 is likely to be less.