UK's Prime Minister David Cameron has asserted that the government will stay on its current economic strategy despite gloomy forecasts for the British economy.

Some believe that the government needs to change its strategy as the economy is predicted to shrink by 0.4 per cent during this year. The International Monetary Fund downgraded the growth forecast from 0.2 per cent to a contraction of 0.4 per cent during the year.

Cameron agreed that the UK's economy is going through a very slow recovery process. However, he brushed off suggestions that the government needs to move to a new economic strategy. He said that there is no need to move to a new plan and added that the efforts will be made to make the existing plan work well.

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 said that the government's plans of welfare cuts including an additional £10 billion on top of the planned £18 billion will go ahead despite opposition.