By Marcus Leach
On the same day that an International Monetary Fund (IMF) report suggests the world economy is slowing, Prime Minister David Cameron has said that the UK economy is slowly healing.
The IMF report presented a gloomier picture of the global economy than a few months ago, saying prospects have deteriorated further and risks increased. And, as such, the IMF’s forecast for global growth was marked down to 3.3 percent this year and a still sluggish 3.6 percent in 2013.
Mr Cameron said, speaking on BBC Radio 4's Today Programme, that the UK is going through a "slow and difficult healing process" as it rebalances its economy.
Further to that he promised that the government was doing "everything it can" to encourage growth in difficult economic times. His comments come during the Conservative Party's annual conference in Birmingham.
"What is happening in Britain is a rebalancing of our economy," he said.
"We need more private sector growth, we need a smaller public sector, we need to make more, sell more overseas and manufacture more.
"It's a slow and difficult healing process, but it is taking place."
However, the IMF now expects the British economy to shrink by 0.4% this year, compared with its forecast of 0.2% growth in July.
"People are very understanding of the difficult inheritance we had - a record budget deficit, the biggest of anywhere in the developed world," Cameron added.
"The deficit is down by one quarter in two years. It was 11% of GDP when we came to power- it's now 8%. That is progress."
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