The outgoing Governor of the Bank of England, Sir Mervyn King has said "there's no point pretending we can go back to the pattern of demand we saw in 2006-2007".
He told ITV News' Economics Editor, Richard Edgar:
We need a big shift of resources towards exports, towards manufacturing and business investment. The consequence of that is we have to accept that private consumption and public spending will not grow as rapidly.
We will get back to the level of unemployment and the path of output, we won't get back to the pattern in which we had a big trade deficit, consumption was high and exports were relatively weak.
That balance has to be changed. Policies are in place to achieve it. We are on track to achieve it. Recovery is in sight.
In the second of ITV News' exclusive interviews, a still-enthused Sir Mervyn King admits his main frustration during his tenure at the Bank.
Recovery is "in sight" for the beleaguered economy, the Governor of the Bank of England has told ITV News in an exclusive interview.