Instead of more complacency from Osborne we need action to secure a strong and sustained recovery - Ed Balls

Ed Balls MP, Labour’s Shadow Chancellor, responding to the IMF’s World Economic Outlook, said:

“After three wasted years of flatlining it’s good that we finally have some growth. But this is the slowest recovery for 100 years and working people are worse off as prices continue rising faster than wages.

“Despite these welcome changes to its forecasts the IMF rightly warns that the UK economy will remain below potential for many years. That’s why the IMF has repeated its view that the Government should bring forward infrastructure investment now, which could be used to build thousands of affordable homes.

“Instead of more complacency from George Osborne we need action to secure a strong and sustained recovery, catch up all the lost ground and tackle the cost of living crisis.”

Ends

Editor’s notes:

  1. The IMF’s World Economic Outlook published today says:

    “Growth is expected to be about 1½ percent in 2013 and 2 percent in 2014, slowly returning to trend in the medium term, but output levels will remain below potential for many years” (pg. 58)

    “In an environment of still low interest rates and underutilization of resources, public investment can also be brought forward to offset the drag from planned near-term fiscal tightening, while staying within the medium-term fiscal framework.” (pg. 60)