Britain’s economy is shrinking for the first time in 16 years, confirming it is in recession.
The toll from the credit crisis and housing crash has ended Britain’s longest unbroken run of growth since quarterly records began in 1955. City analysts gave a warning that the economy could shrink at an even faster pace in coming months.
Figures for gross domestic product revealed a worse-than-expected fall of 0.5 per cent over the past three months. A recession is defined as two consecutive quarters of negative growth, but a further contraction is inevitable.
We aren’t as dependent on Britain to buy our produce as we were last century. But it’s still a significant market for our exports so if the Brits tighten their belts we’ll feel it too.