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11.2.87
10.
In national accounts terms, public sector
expenditure recorded a growth of 1% in 1986, with the
decline in government capital expenditure offset by an
increase in consumption expenditure (4).
11.
So, in 1986, we enjoyed buoyant private sector
activity led by a strong growth in exports. This resulted
in a highly satisfactory overall economic performance. The growth rate of the gross domestic product (GDP) in
1986 was slightly below 9%, much higher than the growth
rate in 1985 of around 1%, and just below that achieved in
1984 (5). It is considerably better than my own mid-year
forecast. What we have seen is the result of a
particularly good second half.
(4)
(5)
Government expenditure in national accounts terms differs from that in the Consolidated Account. The major difference is that public sector expenditure in national accounts terms. includes capital expenditure by public corporations (which is not included in the Consolidated Account) but excludes recurrent expenditure by Government trading departments, expenditure on land acquisitions and property purchases, recurrent and capital subventions, and welfare payments (all of which are included in the Consolidated Account and, of which, land acquisitions and property purchases in 1986-87 were the major sources of growth in this Account). Excluding capital expenditure by public corporations, public sector expenditure in national accounts terms increased by 3% in real terms. Further details of the difference are given in Appendix C.
The GDP growth rate for 1986 is a preliminary estimate, while that for 1985 is provisional.
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