§ Mr. Arthur Lewisasked the Chancellor of the Exchequer if he will make a statement on the latest report of the Organisation of Economic Co-operation and Development which forecasts an accelerating rise in inflation in the next year, a growth rate of only 2¼ per cent. and a balance of payments surplus of £1,300 million.
§ Mr. Denzil DaviesAs usual, the OECD report gives a useful account of the economic situation in the United Kingdom. The OECD projects growth of GDP at 4¼ per cent. per annum in the first half of 1978. By convention, it assumes no further stimulus to the economy from Government policy; its projection for the second half of the year is 2¼ per cent. per annum. It forecasts the rise in consumer prices to remain in single figures; and its policy discussion points to the importance of reducing it further. For 1978 as a whole, the OECD forecasts a current account surplus of $2¾ billion.