€2.8bn to be borrowed in 2004

Some €2.8bn will be borrowed in 2004, Finance Minister Charlie McCreevy has announced.

Minister McCreevy forecast that GDP would grow by 3.3% next year, with GNP growth of 3%. GNP growth would rise to 4% and 4.5% in 2005 and 2006 respectively.

The Minister forecast an average unemployment rate of 5% for next year, with inflation averaging 2.5%.

Mr Mc Creevy said public spending would rise by just under 7% next year, with an Exchequer deficit of €2.8bn planned.