BBC NEWS UK recession is 'gathering pace'
The UK economy contracted 1.8% between December and February, the National Institute of Economic and Social Research (NIESR) has estimated.
The fall in GDP was bigger than the 1.7% drop seen in the three months to the end of January, NIESR said.
The level of economic activity is now 4.3% below its peak of April 2008, according to NIESR's data.
Meanwhile, data showed the UK's goods trade deficit widened to £7.745bn in January from £7.232bn the month before.
Exports to non-EU countries fell by 16%, the Office for National Statistics said, as the global downturn hit demand for UK made goods.
However, exports to the UK's main trading partner, the EU, climbed by 6% as the pound weakened substantially against the euro.
The Bank of England is to launch its quantitative easing scheme on Wednesday.
It will offer to buy up to £2bn of government bonds to help boost the supply of money and stimulate the economy.
The Bank said last week it would pump a total of £75bn into the economy, having cut interest rates to an all-time low of 0.5%.
It also has government permission to inject a further £75bn into the economy if it wishes
The NIESR said that the level of economic activity in the UK had now fallen back to that in August 2006.
It said the economy was experiencing a sharp reduction in stock levels and weak demand for manufactured goods.
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The UK economy contracted 1.8% between December and February, the National Institute of Economic and Social Research (NIESR) has estimated.
The fall in GDP was bigger than the 1.7% drop seen in the three months to the end of January, NIESR said.
The level of economic activity is now 4.3% below its peak of April 2008, according to NIESR's data.
Meanwhile, data showed the UK's goods trade deficit widened to £7.745bn in January from £7.232bn the month before.
Exports to non-EU countries fell by 16%, the Office for National Statistics said, as the global downturn hit demand for UK made goods.
However, exports to the UK's main trading partner, the EU, climbed by 6% as the pound weakened substantially against the euro.
The Bank of England is to launch its quantitative easing scheme on Wednesday.
It will offer to buy up to £2bn of government bonds to help boost the supply of money and stimulate the economy.
The Bank said last week it would pump a total of £75bn into the economy, having cut interest rates to an all-time low of 0.5%.
It also has government permission to inject a further £75bn into the economy if it wishes
The NIESR said that the level of economic activity in the UK had now fallen back to that in August 2006.
It said the economy was experiencing a sharp reduction in stock levels and weak demand for manufactured goods.
Or shouldn’t I ask?
"A real leader faces the music, even when he doesn't like the tune." Anon
Angus
Angus Dei on all and sundry
NHS Behind the headlines
NHS-THE OTHER SIDE
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