ABSTRACT
In the previous article of this annual series, the economic position was described as one in which we were all ‘awaiting improvement’. During the next twelve months, to April 1964, the pace of expansion was fast and furious, partly in response to the monetary and fiscal measures of the second half of 1962 and the budget of 1963, but also stimulated by rising demand at home and abroad. In the winter of 1963, unemployment was falling, exports were rising, and the national income was growing at a rate of around 6 per cent per annum, while prices were steady. This rate of growth was well above the objective of 4 per cent put forward by the National Economic Development Council and accepted by the government. Quite early in 1964 doubts were expressed as to the practicability of maintaining expansion at so swift a pace without giving rise to inflationary developments, especially as prices were edging upwards, labour scarcities were reported and the external situation was becoming less favourable.
