§ Mr. Forthasked the Chancellor of the Exchequer what information he has as to the rate of growth of gross domestic product over the last five years in (a) Italy and (b) the United Kingdom; and if he will make a statement.
§ Mr. LawsonThe United Kingdom's economy has grown twice as fast as Italy's over the last five years. Real growth has been over 14 per cent.—double that of Italy, and faster than in any of the major industrialised countries except Japan.
The latest comparison by the OECD suggests that Britain's economy is about 14 per cent. larger than Italy's, and living standards per head are about 15 per cent. higher.
Even if GDP is compared at market exchange rates, without any allowance for differences in purchasing power, it is about 8 per cent. higher in the United Kingdom than in Italy, and about 9 per cent. higher per head of population.
The detailed figures for 1986 are as follows:
Purchasing power of GDP GDP at market exchange rates Level ($bn) Per capita ($) Level ($bn) Per capita ($) United Kingdom 645 11,400 545 9,600 Italy 565 9,900 505 8,800 Source: OECD/Eurostat estimates.