LONDON, April 30 - British finance minister Gordon Brown defended his growth forecasts, much derided for over-optimism, on Wednesday, saying the end of the Iraq war had removed much of the uncertainty surrounding the world economy. Brown predicted in his April 9 budget that Britain would grow by 3.0 to 3.5 percent next year compared with independent forecasters' average prediction of 2.3 percent, bringing him under much criticism. But Brown told parliament's Treasury Select Committee that other forecasters were likely to fall into line with his own estimate as optimism about the world economy picked up as the war in Iraq ended and oil prices fell.
"Now we look at the picture it is a bit different. There is more optimism and less uncertainty about the world economy," Brown said. "I think people will move to the position we are putting forward." Asked about the discrepancy between his forecasts and that of even the Bank of England which sees growth in the region of 2.5 percent through next year, Brown said that the committee should wait for the central bank's May inflation report. "If you want to hang your whole case on a forecast that was made before the Iraqi war, when the oil price was incredibly volatile and wasn't coming down, when there was a huge amount of additional uncertainty, that is a matter for you and the committee. "But I would suggest to you if you want to hang your case on what the Bank of England is saying you should wait until the Bank of England publishes its latest inflation report in May."//