The OECD says – UK recovery will remain hold back for two years

According to the report, the UK economic gain will remain hold back for two years, with government expenses cuts and sluggish world trade referring down growth.

The OECD (Organization for Economic Co-operation and Development) expected growth this year of 1.5%, enhancing to 2% in 2012. The sovereign Office for Budget Responsibility's estimate is for 1.9% growth this year.

The OECD called the government's expenses "determined and essential". It is very necessary to meet a sustainable recovery. This time OECD’s wording are somewhat different than previous report, when it called them "substantial but necessary".

The consultation government’s body has also advised that interest rate should remain lower.

The OECD showed great concerns that stable economic gain in the collective to the 2008-09 declines had secret an increase of "important imbalances", making over-dependence on the financial sector, flourishing asset prices and surplus borrowing. It suggested expenses cuts are essential to achieve these disproportion.

The reforms should be made to the housing market with the objective of reducing asset prices and enhancing affordability. Education as well, should be improved to focus resources further on needy children.

The organization, which collects information on countries to more its objective of motivating economic development and world business, said: "Monetary policy should remain expansionary, even if title of inflation is drastically above target, to sustain the economy. On the whole a hold back growth is estimated over the next two years.

George Osborne, the chancellor said the OECD report was a supported document of his government’s plans for the country. The Budget will repeat what I look as the key point of this OECD report. This government has maintained the right direction for the British economy but we will have to do too much."

Though Ed Balls, Labour's Shadow Chancellor said the OECD report proves that government economic policy was on the incorrect way. He said indeed the facts is growing that his inattentive plan to cut deeper and quicker than any other big economy in the world isn't working.