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.
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