Britain is on course to avoid being plunged into a triple-dip recession, Ed Balls has said.
But the shadow chancellor believes the most likely outcome for the UK economy is a recovery that is "not as strong as it should be".
Balls also warned there was a danger of other countries "moving ahead when we are not".
In an interview with The House magazine, he said: "I don't think a triple-dip recession is the most likely outcome.
"I think the most likely outcome is a recovery which is not as strong as it should be, where living standards are still very much under pressure and where you are still lacking confidence in the business and consumer sector and the danger is you pay a long-term price not just in terms of higher long term unemployment and investment decisions not being made, but other countries moving ahead when we are not.
"That's my worry going into next year."
Balls accused David Cameron of being complacent on growth after the Prime Minister told MPs that good news on the economy would keep coming.
"I think that moment when the Prime Minister said 'the good news will just keep coming' was as ill-judged as his statement in October 2010 'we are out of the danger zone'.
"When you actually look at what's happened in our economy after the Olympics, when you look at what are the challenges we face next year, the idea that you can just sort of say 'at last the recovery is secured' or 'we've done the difficult bit on growth' is very complacent.
"Take away the effect of the Olympics and the bank holiday and growth was 0.3%."
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