Leading economists have warned in a new report that one per cent could be the new norm in the UK in the coming years.
The country recorded growth of 0.7 per cent in the second quarter of the year, with some analysts predicting GDP expansion for the year as a whole will be over one per cent.
In the report, Tim Congdon, Joanna Davies, Haroon Fatih, Dr Andrew Lilico, Robert Sierra, Peter Warburton and Trevor Williams argued that unless action is taken the UK's economy will now only double in size every 70 years.
They noted the Treasury's claim that 2.5 per cent growth for the economy is sustainable in the long-term may not be true.
It was pointed out: "The instinctive desire to reclaim the economic heights of late-2007 or early-2008 may not be consistent with the return to a sustainable path of economic development."
These comments come shortly after the UK's chancellor George Osborne insisted in a major speech in London that the economy is turning a corner.
Though he was criticised for the address by the Labour Party, business secretary Vince Cable defended Mr Osborne.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.