According to the latest figures from the National Office of Statistics, the UK economy has declined more drastically than expected in the first quarter, as reported in the Financial Times.
The economy shrunk by 2.4 per cent – the most it has shrunk in 50 years. Quarter on quarter decline of gross domestic product was greater most recently in 1958.
Gross domestic product dropped more sharply than anticipated in Q1, while households real disposable income fell by 2.4 per cent in the final quarter of last year, and business investment dropped 7.1 per cent over the quarter.
The news follows reports that lending in the UK – to businesses as well as consumers – hit a setback with the annual rate of lending growth, 1.3 per cent, the slowest on record.