25th May 2011
Borrowing costs would also have to rise, it added.
The OECD said it supported the UK Government's attempt to reduce the nation's budget deficit via spending cuts but predicted that the UK would "continue to lag behind most other leading industrial nations as it recovered from the downturn".
It predicted growth of1.4% in 2011, rising to 1.8% in 2012. This will also result in higher unemployment, with 8% of the workforce without a job by 2012.
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