Figures to show recession deepening

Further grim news is due on the recession with official estimates set to show a further sharp fall in UK output in the first three months of this year. The Office of National Statistics' (ONS) initial estimate of gross domestic product for the first quarter of 2009 was pre-empted by Chancellor Alistair Darling. In his Budget speech, Mr Darling predicted the economy would contract by a similar amount to the 1.6 per cent decline seen in the final three months of 2008. He confirmed that the UK was in the grip of the deepest recession since the Second World War, with the economy set to shrink by 3.5 per cent in 2009 - more than double his previous forecast. But he surprised economists by saying the UK would return to growth by the end of the year and predicted GDP would rise 1.25 per cent in 2010, before soaring 3.5 per cent in 2011. The International Monetary Fund (IMF) has however issued its own forecasts, predicting a 4.1 per cent contraction in output for 2009. It also estimates the UK will still be in recession next year, shrinking by a further 0.4 per cent.

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ITN | April 24, 2009

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