The UK economy shrank at its sharpest rate in 30 years in the first three months of 2009, casting serious doubt over government forecasts for a recovery by the end of the year.
Figures show British GDP fell 1.9 percent on the quarter, much worse than the predicted drop of 1.5. It suggests more policy action might be needed to stem what is now a deep recession. Opposition leader David Cameron says the Labour government is out of its financial depth: “This confirms that the recession is now being going on for a year. And it also confirms it’s the deepest since the war, worse than anything in the 80’s and 90’s. And it’s clear that what the government’s been doing hasn’t been working In a glimmer of good news, separate data showed an unexpected rise in retail sales on the month from March, driven by strength in the clothing and food sectors.