This commentary describes the main features of the economy at home and abroad as background to financial developments, and gives a more detailed account of points made in the general assessment.
- Economic activity abroad remains weak. Some modest recovery next year seems likely, although prospects are uncertain.
- At home, spending has risen in the last year or so, but with little effect on output. Inflation has fallen sharply this year.
The continued strength of bank lending to the private sector-both persons and companies-is noted. The PSBR, by contrast, has been declining.
Economic commentary