With regard to final demand, while the decline in business fixed investment is coming to a halt, private consumption continues to be weak. Moreover, housing investment remains sluggish and public investment is declining. Meanwhile, exports continue to increase, albeit at a slower pace.
In the current situation it is therefore extremely important to keep a tight rein on government expenditure. It will be interesting to see when growth in public spending once again falls below 1.0 per cent. Since the millennium this has only been the case in 2003. Does the Council believe it will be in 2007, when growth of 0.7 per cent is anticipated?