British economy shrinks by 0.2%

The UK’s economy suffered a worse-than-expected 0.2% contraction in the final quarter of 2011, it was revealed today, fuelling fears of another recession.

The Office for National Statistics’ first estimate for the figure marks the first time the UK’s gross domestic product (GDP) has fallen since the final quarter of 2010 when the Arctic weather was blamed for a 0.5% drop. The City had expected a decline of 0.1%.