Billionaire investor George Soros believes the British government has to ease up on its spending cuts in a bid to avoid going back into recession.
Speaking at the Davos 2011 conference, Soros said the current austerity Budget is unsustainable as it risks killing off economic growth.
Soros’s comments comes after the Office for National Statistics announced a 0.5% fall in GDP output in the final quarter of 2010.
Soros said he had some sympathy with Chancellor George Osborne’s plans, claiming they were the right move in the first place. However, he disagreed with Ed Balls’ stimulus measures, which targeted consumption. (article continues below)
He said: “You need fiscal stimulus, not necessarily for consumption but to improve competitiveness.
“Too large a part of the stimulus went into consumption, which perpetuated the problem.”