The global economy is facing its biggest test in more than a decade amid mounting fears of a US recession, Chancellor Alistair Darling has warned.

But he said a resilient UK economy will help weather the "uncertain times" ahead.

Mr Darling called for confidence in the UK and its ability to cope with financial turmoil following moves which saw him nationalise crisis-hit lender Northern Rock last week.

Speaking at a Euromoney Bond Congress for investors in London, he said: "We all recognise that the global economy is facing its biggest test in more than a decade.

"Here in the UK, our economy remains strong and stable; we were the fastest growing economy in the G7 last year. Growth has remained stable and close to trend for the past two-and-a-half years.

"But these are uncertain times. We do not yet know the full extent of the slowdown affecting the United States."

He made the claims ahead of the Budget on March 12, which will be the first for the Chancellor since his appointment last year, and added that the UK economy proved "more resilient than any of the major advanced nations to the shocks of the past decade".

"I believe we will get through this turbulence. And we must maintain confidence because the global economy, particularly to developing markets remains strong," he said.

The Budget comes at a gloomy time for the nation's finances, with concerns over slowing growth, soaring inflation and a downturn in the housing market.

And the Chancellor is facing growing Conservative calls to resign following the decision to take Northern Rock into public ownership.

He said he will "continue to take the decisions necessary to ensure the stability of the economy" when he announces his spending plans next month.

In a move to reassure over the health of the UK economy, he added: "We have low debt and historically low interest rates. Inflation is close to target at 2.2% in January. The UK presently has the second lowest inflation rate in the G7, behind only Japan."

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