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.
More top news
Low pressure brings cooler, showery conditions over the next week
100-year-old tourist mugged by stranger after he fell getting off a bus as he returned to Gloucester where he used to live.
The case of a child killer who was the first person to be convicted under DNA evidence is to be reviewed by the Parole Board.