David Cameron will defend his decision to slash Government spending as he meets US President Barack Obama for one-on-one talks on the fringe of the G8 summit in Canada.
The gathering of global leaders has been marked by a transatlantic spat over the economy, with Mr Obama urging continued fiscal stimulus to avoid the risk of renewed recession, while Europeans - led by the Prime Minister - argue that the time has come for austerity measures to cut borrowing.
Mr Cameron said he expected the G8 to back his approach, and played down suggestions of a rift with Mr Obama, whom he is meeting for face-to-face bilateral talks for the first time since becoming Prime Minister last month.
Despite Mr Obama's warning in an open letter last week that over-hasty withdrawal of state stimulus could result in "renewed economic hardships and recession", Mr Cameron insisted the President accepted that economic policies must be tailored to suit individual countries' particular circumstances.
While countries with a budget surplus, like China, need to stimulate domestic demand, nations with large deficits need to restore confidence by "living within their means", said the PM.
"The risk to us - and the Americans and others recognise this - is not taking action," said Mr Cameron. "I think that the G8 will actually conclude that those countries with the worst problems need to accelerate their action, which is what we have done.
"Of course, looking across the world, there is still the underlying problem of the big surplus countries, like China, and the big deficit countries, like parts of Western Europe and America, and we have got to deal with those imbalances, but part of dealing with the imbalances is for the worst deficit countries to roll up their sleeves, get on with the job and make sure they are living within their means. That's what we have done in Britain. I think it will actually unlock confidence because people will see that there is a strong Government with a plan."
Also high on the agenda for the bilateral meeting with Mr Obama will be Afghanistan and the BP oil spill.
On Friday night, Mr Cameron promised to use "quiet diplomacy" to seek "clarity and finality" for BP over the ultimate size of its liabilities for environmental and economic damage in the Gulf of Mexico.
And he indicated that he envisages UK troops leaving Afghanistan before the next election - due in 2015 - saying: "I want that to happen, make no mistake about it. We can't be there for another five years, having been there for nine years already."