Britain is set to avoid plunging into a triple-dip recession, says Ed Balls.
But the Shadow Chancellor believes that millions of people will see their living standards remain “under pressure”.
He has also given a warning that there is a danger of other countries surging ahead while Britain is caught in a slow economic recovery.
Bank of England governor Sir Mervyn King said this month that the economy could be shrinking again after the summer’s Olympics boost, raising fears of a triple-dip recession. But Mr Balls told The House magazine: “I don’t think a triple-dip recession is the most likely outcome.
“I think the most likely outcome is a recovery which is not as strong as it should be, where living standards are still very much under pressure and where you are still lacking confidence in the business and consumer sector.”
He accused David Cameron of being “complacent” on growth after the Prime Minister told MPs, before a third-quarter one per cent jump in GDP, that good news on the economy would keep coming.
But the Tories accused Mr Balls of “rank hypocrisy”, with a spokeswoman saying: “His comments show Labour hasn’t learned a thing, and would drive us into further spirals of debt and borrowing if given the chance.
“This Government is committed to cleaning up the mess Labour left, and has real plans to pay down our debt, drive growth and create jobs.”
