The strength of growth helped to boost revenues resulting in a General Government Surplus of 2.9 per cent of GDP, one of the best performances in the European Union. Some of the strength of revenue, however, reflected the composition of growth, with construction and the property market contributing significantly.
The fact that firms have come to take a positive view of their business conditions suggests that a virtuous cycle from profits to fixed investment is starting to operate, where they aim to achieve higher profitability by raising the prices of their goods and services.