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Module 10: ASEAN Finance and Accounting

Language Focus

Language Focus 5: Paraphrasing

Paraphrasing is a technique that is often used in written language, but can be used in spoken language, too. It is a technique that many find difficult to master, but that can be very useful.

In the examples given, the paraphrasing was used to describe the meaning of the actual text in a prospectus. The general idea of paraphrasing is to express the meaning using different words, but maintain the main information. Often it is to achieve greater clarity.

Here are some excerpts from the Chancellor’s 2014 Budget speech in the UK:

Excerpt 1

(1) A year ago at the Budget, the Office for Budget Responsibility (OBR) forecast the economy to grow by just 0.6pc in 2013. They now confirm that it grew by three times as much. At the Autumn Statement, they significantly revised up their expectations for future growth. Today I can tell the House they are revising up their forecast again.

(2) A year ago, they predicted growth in 2014 would be 1.8pc. At the Autumn Statement, 2.4pc. Today the OBR forecast growth in 2014 of 2.7pc. That’s the biggest upward revision to growth between Budgets for at least 30 years.
Growth next year is also revised up to 2.3pc. Then it’s 2.6pc in 2016 and 2017.

(3) And with the output gap closed around a year earlier than previously predicted, growth returns to around its long term trend, at 2.5pc in 2018.

Taken together, these growth figures mean our economy will be £16 billion larger than was forecast just four months ago.
As we have already stated and observed, financial language can be difficult to understand. Paraphrasing usually makes the meanings clearer. (Note the key information underlined in the text.)

(1) The economy grew 300 percent more than was forecast in 2013, and is expected to rise further.
(2) The growth to 2.7 percent from 1.8 percent is the largest between Budgets for 30 years, and is expected to continue growing in 2016 and 2017.
(3) Together with the output gap, which closed a year earlier than expected, it means the economy will be sixteen billion pounds larger.

Excerpt 2

Today again we are reminded that the most important consequence of our plan is more people in work – with each job meaning a family more secure.

The pace of net job creation under this government has been three times faster than in any other recovery on record. 1.3 million more people in work.

The latest figures today show a staggering 24pc fall in the claimant count in just one year, and the fastest fall in the youth claimant count since 1997.

The OBR today forecast one and a half million more jobs over the next five years. Unemployment down from the 8pc we inherited to just over 5pc.

And the OBR predict earnings to grow faster than inflation this year and in every year of the forecast. That’s why the country can afford a real terms increase in the National Minimum Wage.

Paraphrased:
Unemployment has gone down and there are 1.3 million more people with work. The claim of benefits has gone down by 24 percent with more young people working and more jobs predicted over the next 5 years. If earnings grow faster than inflation the minimum wage may be increased.

Excerpt 3

I can tell the House that the Office for Budget Responsibility have revised down the underlying deficit in every year of their forecast.

Before we came to office the deficit was 11pc. This year they say it will be 6.6pc - lower than forecast and down a third. Next year, 5.5pc – down a half. Then it will fall to 4.2pc, 2.4pc and reach 0.8pc in 2017-18. In 2018-19, they are forecasting no deficit at all – instead, at plus 0.2pc, a small surplus.

Paraphrased:
The OBR have revised down forecasts every year, and the deficit has gone down by a third this year. It is predicted to continue to decrease until 2018, and in 2019 they are forecasting no deficit but a small surplus.

Excerpts