The UK's economic growth will be 'subdued' in 2011, held back by fiscal tightening and weak real income growth, according to a new OECD report.
However, the recovery could gain momentum in 2012 when exports and business investment are expected to increase.
While GDP is predicted to rise by 1.7% in 2011, a 2% increase is expected in 2012, while unemployment is forecast to fall from 7.8% to 7.6%.
In its economic outlook, the OECD also praises the moves made by the coalition government in the recent Spending Review.
It says: "The government's ambitious medium-term plan has significantly reduced fiscal risks and could, in combination with efficiency improvements in health spending and structural reforms, support growth in the longer term.
"While monetary policy will need to remain expansionary over the forecast period against the background of a significantly tighter fiscal stance, the process of normalisation of interest rates will have to start in earnest during 2012 as underlying inflation starts to increase."
Across all member countries, the OECD says unemployment has now peaked at 8.5%, while GDP growth of 2.8% is expected in 2012, compared to 2.7% this year.
The report adds: "Growth is picking up in the OECD area - at different speeds across regions. Strong growth in emerging-market economies is contributing significantly.
"However, risks to the global recovery could be higher now, given the speed and magnitude of capital inflows in emerging-market economies and instability in sovereign debt markets."
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