Momentum has returned to the UK and the Government's plan is working a Conservative Treasury minister said following a series of positive economic figures.
Sajid Javid acknowledged there was "still a long way to go" to repair the damage but echoed Chancellor George Osborne in insisting the economy was "out of intensive care".
Mr Javid warned that Labour's economic policies would push up borrowing by £50 billion and leave homeowners at risk of rising mortgage costs if interest rates could not be held down.
Writing in the Daily Telegraph Mr Javid said: "The economy has moved out of intensive care and into recovery. The deficit is down by a third, private sector employment is at an all-time high and there are over 300,000 more small businesses.
"And our plan has ensured that we have kept mortgage rates low, while preventing a bond market crisis that would have destroyed businesses and jobs. We only have to look to our European neighbours to see what that would have been like.
"Yes, growth was slower than expected over the last two years, but the eurozone was in a mess and our economy was hit by a temporary oil price spike. Since those problems have abated - and subsequent monetary support by the Bank of England and the European Central Bank has taken effect - momentum has returned to our economy."
He said Labour had argued that the "only way to guarantee a recovery was through even more government borrowing" but shadow chancellor Ed Ball's argument has been "blown apart".
"Yet Ed Miliband and Ed Balls are still clinging on to this same old Labour policy. They still think, bizarrely, we could borrow less by borrowing more," Mr Javid said.
"And for all Ed Miliband's promises of spending 'discipline', he's been too weak to stop his frontbenchers from making unfunded spending commitments that would mean even more borrowing than he admits.
"In fact, just this year alone, Labour have racked up a staggering £50 billion of spending commitments without saying how they would pay for them. That would mean £2,960 more borrowing and more debt for every working family in the country."