Speaking to the BBC David Cameron said the government was doing everything it could to encourage growth in difficult times.
His comments come after the International Monetary Fund (IMF) said it expected the UK economy to shrink by 0.4% this year.
Cameron told the Today Programme: “What is happening in Britain is a rebalancing of our economy. We need more private sector growth, we need a smaller public sector, we need to make more, sell more overseas and manufacture more.
“It’s a slow and difficult healing process, but it is taking place.”
He also said the government was on the right track towards cutting the deficit.
“The deficit is down by one quarter in two years. It was 11% of GDP when we came to power- it’s now 8%. That is progress.”