Sorrell: 'UK Will Avoid Double-Dip Recession'

Hours ahead of the publication of crucial GDP figures, one of Britain's most influential business leaders has told Sky News he believes the UK economy will avoid a double-dip recession.

Speaking to Sky's economics editor Ed Conway at the World Economic Forum meeting in Davos, WPP chief executive Sir Martin Sorrell said: "Recession is two quarters of negative GDP growth technically - it doesn't feel like that now, some commentators believe we will get that, I personally don't."

But, Sir Martin insisted, this prediction relies on positive action to improve growth.

"Given the reduction in the rates of increase in Government spending... it's inevitable that activity was going to slow down, the big issue in the UK is not reduction in Government spending but the growth plan.

"The coalition Government has broadly done a good job in getting the deficit under control, but the real issue is the growth plan.

"I'd like to see something more in the context of growth infrastructure, like education, technology, immigration policy, taxation policy," he said.

"You've got to lift people's eyes, that's the real issue for the Government - to give the electorate the belief that taking the pain is worthwhile, and that we will get jobs and growth in the end."

The meeting of world leaders and global business elite in the Swiss ski resort will be formally opened later today by German Chancellor Angela Merkel, in a speech that is expected to focus heavily on the turmoil in the eurozone.

Asked for his prediction on the future of the single currency, Sir Martin said he believed the eurozone would "muddle through, maybe with the exception of Greece, but will hold together", adding however, that the "real issue is America in 2013 post the election".

Another area likely to be a significant debating point over the course of the week in Davos is unemployment, particularly among young people.

"Youth unemployment statistics in western Europe and the United States are shattering and will have long-term political and social consequences unless something is done about it," Sir Martin said.

Commenting on the presence of protesters from the Occupy movement, Sir Martin said: "That movement epitomises the sort of issues that will be a big point of debate here. The whole issue of moral capitalism will be very important."

'Moral capitalism' have been the buzz words for British politicians of late who are keen to show they understand the public's displeasure with excessive executive pay and bonuses.

However, commenting on a speech by Business Secretary Vince Cable earlier this week, Sir Martin said he believed there was a danger good businesses could be punished if the proposed reforms went too far.

"It's a little bit of paradox that I should have to apologise for being successful, because I thought that's what we were supposed to do," he told Sky News.

"The issues of executive pay are understandable in the context... but I don't feel I should have to apologise for running a successful company."

It is the 42nd year that the WEF has held its annual meeting in Davos, which is expected to attract nearly 40 world leaders and a large number of the most influential central bankers and heads of leading financial institutions.

Prime Minister David Cameron is expected to make a special address to the forum tomorrow.