Osborne says poor GDP will not deter policy drive

LONDON (Reuters) - A fall in national output in the fourth quarter shows Britain faces real problems, including sagging demand in the euro zone, but it will not undermine the government's resolve on policy, Chancellor George Osborne said on Friday.

He was speaking after data showed gross domestic product data fell more than expected, returning the economy to negative territory at the end of last year and adding to growing pressure on the government to slow the pace of budget cutbacks.

"We can run away from these problems or we can confront them," Osborne told reporters in Davos. "I'm determined to confront them so we go on creating jobs for people."

(Reporting by Patrick Graham; editing by Stephen Addison)