Ahead of the speech, sterling hit a four-year low against the U.S. dollar at $1.45.
Osborne is expected to note that the International Monetary fund believes world growth in 2015 was the slowest since 2009, and if problems in emerging markets persist, or market volatility continues, global growth in 2016 could be much the same.
The U.K.'s economy is expected to have grown 2.5 percent in 2015 and is predicted to grow 2.2 percent in 2016, according to forecasts by the International Monetary Fund, but Osborne is expected to warn against complacency, adding that his controversial program of government spending cuts and austerity must be maintained.
"Last year was the worst for global growth since the crash and this year opens with a dangerous cocktail of new threats. For Britain, the only antidote to that is confronting complacency and sticking to the course we've charted."
"Today I want to issue this warning: unless we finish the job of fixing the public finances, to get Britain back into the black by finally spending less than we borrow, all of the progress we have made together could still easily be reversed."
Latest figures appear to back up Osborne's concerns. Growth in the U.K. might be robust and unemployment is at a near-10 year low, but there are signs of weakness. This is particularly evident in the manufacturing sector, placing further pressure on the economy which is increasingly reliant on the services sector and consumer spending.