The UK is officially in recession

The UK is now in recession for the first time since 1991, official government figures have confirmed.

Gross domestic product fell by 1.5% in the last three months of 2008 after a 0.6% drop in the previous quarter. That means that the widely accepted definition of a recession – two consecutive quarters of falling economic growth – has been met.

US economist Kenneth Rogoff yesterday said 2009 would be a difficult year but that there should be cause for optimism by 2010.