Forecast Summary

With electoral uncertainties removed, we are forecasting four years of steady growth combined with low inflation, broad balance on the current account and a gradual reduction in unemployment. The short-term outlook is more encouraging and 1987 is expected to be an above average year. Output is forecast to rise 3–31/2 per cent, inflation is back down to 31/2 per cent by the end of the year, the current account is in surplus and unemployment falls by over 200,000.