Britain has an "Alice in Wongaland" economy in which people are taking out payday loans and raiding their savings to fuel shopping sprees.
However Ann Pettifor, of Prime Economics, warned that the improved figures were fuelled by debt and will ultimately prove to be "unsustainable".
She also warned that the government's Help to Buy scheme, under which people can take out government-backed mortgages to buy new homes, will create another "bubble".
She said: "I think it's artificial and can't be sustained. People's incomes are falling in real terms, and have done so for five years. Now there's been this sudden, go on let's just go made because everyone says its recovery.
"At a fundamental level it's quite dangerous because household debt is still 153 per cent of GDP.
"There's nothing seriously underpinning this recovery, and that's why it's Alice in Wongaland, the confidence fairy is out there."
Read more: Britain has 'Alice in Wongaland' economy - Telegraph
However Ann Pettifor, of Prime Economics, warned that the improved figures were fuelled by debt and will ultimately prove to be "unsustainable".
She also warned that the government's Help to Buy scheme, under which people can take out government-backed mortgages to buy new homes, will create another "bubble".
She said: "I think it's artificial and can't be sustained. People's incomes are falling in real terms, and have done so for five years. Now there's been this sudden, go on let's just go made because everyone says its recovery.
"At a fundamental level it's quite dangerous because household debt is still 153 per cent of GDP.
"There's nothing seriously underpinning this recovery, and that's why it's Alice in Wongaland, the confidence fairy is out there."
Read more: Britain has 'Alice in Wongaland' economy - Telegraph
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