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UK economy shrinks at fastest rate for 30 years

The gross domestic product figure for the UK economy fell by 1.9% in the first quarter of 2009 which is the steepest fall for 30 years. Analysts had expected a fall of around 1.5% and the figure of 1.9% has shocked many and put further pressure on Alistair Darling's economic forecasts as presented in the budget. This is an even bigger fall than the 1.6% seen in the final quarter of 2008 which confirmed the U.K.'s entry into recession.

While the UK authorities continue to cling to hopes that the UK economy will recover in the latter part of 2009 and then go on to positive ground in 2010 there are many who now believe these figures, released earlier this week, are way out of sync with the real economy. If Alistair Darling and Gordon Brown are forced to revisit their economic forecasts in November, and next April, this will blow apart the reputation for prudence which Gordon Brown had built up over the last decade. These are very worrying times for the Labour government and despite attempts to try and talk up the economy and bring forward the recovery there are many who are disbelieving of the figures released by the Treasury.

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