David Cameron has insisted that the Government will stick with its economic strategy despite warnings that the economy is set to shrink by 0.4% this year.
The Prime Minister admitted that Britain faces a "very slow healing process" after the International Monetary Fund (IMF) downgraded its previous forecast of 0.2% growth.
But he dismissed calls to change course to boost growth and adopt a "Plan B" and vowed to make sure "Plan A" was "firing on all cylinders".
Mr Cameron said: "The IMF also say we shouldn't abandon our plans of making reductions in Government spending and also, regrettably in some cases, putting up some taxes to get on top of our debt and our deficit.
"So it's not Plan B that we need. What we are doing is making sure that every part of Plan A is firing on all cylinders."
He added: "These are difficult times but the worst thing to do when you have got a problem of too much spending, too much borrowing and too much debts is to do what Labour say and have more borrowing and more debt. You can't borrow your way out of a debt crisis."