Olympics Minister Tessa Jowell made headlines last month month by saying Britain would probably not have bid for the Games had it known that a global economic downturn was coming.

 

But Higgins claimed investment in the city's infrastructure is providing an unforeseeable boost to the economy.

 

Analysts have suggested there will be two million unemployed in the U.K. by the end of the year and, with Britain's construction sector having shrunk last month at the fastest pace on record, Higgins suggested the Olympics is providing a rare stimulus to the economy.

 

He said: "In a challenging economic climate, work on the Olympic Park has already created nearly 3,000 new jobs with nearly one in 10 of those working on site previously unemployed,"

 

"Up to 9,000 workers will be needed at the peak of construction.

 

"The Games are also already creating huge opportunities for U.K. businesses."

 

Higgins said the ODA had given out contracts worth a total of £3.5 billion to more than 800 companies, 98 per cent of which are based in Britain.

 

Higgins' comments come the day after Olympics Minister Tessa Jowell said that about £100 million every month is being spent on construction for the Games.

 

Jowell, who warned there would be no more public money available for the project, also claimed that hosting the Olympics would still be a positive thing for London despite the huge cost and funding difficulties.

 

She said: "The Olympics is essentially economic gold at a time of economic need.

 

"A shot in the arm for investment."