The Institute for Public Policy Research (IPPR) has said that the 2013 year could turn out to be a sluggish year for the global economy.

The institute said that the New Year could against see slower economic growth and prolonged economic crisis in the European economy. It said consumer and business spirits have remained low over the previous few years due to austerity measures and the coming year could become a "groundhog year".

IPPR chief economist Tony Dolphin said that the authorities do not have a plan for the growth in the coming year and the government is expected something to come up. The Office for Budget Responsibility expects 1.2 per cent GDP growth in 2013 and 2 per cent in 2014 depending upon the belief that the households will be ready to take on additional debt.

The IPPR has advised the government to boost demand in the economy, increase investment in infrastructure, set up a British Investment Bank and guarantee a minimum wage job for the unemployed people in the country.

Mr Dolphin said, "Policy-makers appear to have little idea how to boost growth in the economy and are left hoping that the news will get better. The risk is that 2013 could be groundhog year for the UK economy. The latest forecasts suggest growth in 2013 will be weak, but better than in 2012, and that unemployment will rise."