Fresh calls for the Government to do more to stimulate the economy have been issued after a business lobby group again cut its UK growth forecasts.
The British Chambers of Commerce (BCC) said GDP will grow by 1.1% in 2011, whereas it had expected 1.3%, while next year's figure was cut to 2.1% from 2.2%.
It is the third time the 2011 forecast has been cut this year as the BCC had expected the economy to grow by 1.9% at the start of the year.
The BCC warned the rebalancing of the economy towards exports and business investment was not happening fast enough and urged the Government to help businesses by improving the infrastructure and cutting red tape.
BCC director general David Frost said: "The Government is right to reduce the deficit but these measures must be matched by policies to stimulate growth.
"The rebalancing of the economy towards net exports and investment is not yet happening at an adequate pace. If we don't get these policies right, we risk any recovery being weak and short-lived."
The BCC cut its forecasts after slower than expected growth in the second quarter of 2011 and the recent weakening in the global economic recovery. It follows similar downgrades from the Bank of England, National Institute of Economic and Social Research and business body the CBI.
"These forecasts are a serious cause for concern," said Shadow Treasury chief secretary Angela Eagle. "It's time George Osborne started taking some responsibility for the choices he has made."
She added: "The Chancellor needs to get out of his complacent denial and start listening to wise voices like the IMF's Christine Lagarde and the Federal Reserve's Ben Bernanke who have warned that simply slamming on the brakes will risk economic recovery.
"We urgently need a more balanced plan to get the deficit down in the medium term which puts jobs and growth first."
