HM Treasury

Pre-Budget Report

02 December 2004

Long-term global economic challenges and opportunities for the UK

The paper assesses the long-term global economic challenges and opportunities facing the United Kingdom over the next ten years. The global economy is undergoing a profound transformation, with far-reaching and fundamental changes in technology and trading patterns.

The paper identifies six key trends that will shape the global economy over this period, including: the rapid growth of large emerging economies in particular China and India, which is shifting the global balance of economic activity; the increasing integration of global markets, as international trade and investment expand; the internationalisation of economic activities, with the production of goods and services dispersed across continents; the growing rewards from innovation; the importance of improving skill levels, equipping individuals to adapt to change; and increasing pressure on energy resources and the environment.

The paper argues that meeting the long-term economic challenges and opportunities will require sustained effort from across a range of policy areas aimed at: entrenching macroeconomic stability; promoting an enterprise culture; promoting innovation; opening up skills to all; ensuring fairness through a flexible and responsive welfare state; and promoting sustainable development, including through effective multilateral action.

Long-term global economic challenges and opportunities for the UK document is available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page .

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