Despite the downgrading of the OECD's forecast, Chancellor George Osborne this evening insisted there were "positive signs" in the UK economy.
Mr Osborne told a CBI Scotland dinner in Glasgow:
The economic outlook remains uncertain but there are some positive signs.
Our economy is healing - jobs are being created, manufacturing and exports have grown as a share of our economy, our trade with the emerging world is soaring, inflation is down, much of the necessary deleveraging in our banking system has been achieved, and the world is once again investing in Britain.
Responding to the growth forecast published by the OECD, Shadow Chief Secretary to the Treasury Rachel Reeves said: "These very concerning forecasts show just how badly the Government's economic policies have failed. Britain's growth forecasts have been slashed by more than any other major economy.
"And while Ministers desperately try to blame allour problems on the Eurozone crisis, the OECD says France and Germany are doingbetter than us.
"In fact Britain is one of just two G20 countries in adouble-dip recession.
"David Cameron and George Osborne need to stop clinging on to their failed economic plan and change course now. Without a serious plan for jobs and growth we won't get the deficit down and yet more long term damage will be done."