UK in recessionFigures confirm that the UK is in recession

24 January 2009

Woolworths store front

The UK economy has shrunk for the second quarter in a row, meaning it is now in recession. 

For the first time since 1991 the UK has entered a period of economic decline, producing less, rather than more, per quarter. 

Figures released at 9.30 am today revealed that gross domestic product (the government's economic barometer) fell by 1.5% in the last quarter of 2008, following a 0.6% contraction in the previous quarter. The latest slump was worse than expected and represents the biggest decline in the UK economy since 1980.

For top tips on beating the credit crunch see our report on how to get the most out of your money.

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