UK economy shrinks 2.4% in Q1; most in 51 yrs

The British economy contracted at a staggering pace of 2.4 per cent in the first three months of 2009, the most for any quarter in 51 years.

The fall in GDP is much worse than last month's projection of 1.9 per cent and the revision has been made mainly on account of weaker output in the construction sector.

"GDP in real terms in the first quarter of 2009 fell by 2.4 per cent compared with the previous quarter. This estimate has been revised down from last month’s estimate of -1.9 per cent," UK's Office for National Statistics said in a statement today. The GDP contraction of 2.4 per cent is the worst since 1958.

"Revisions to GDP are larger than usual, reflecting greater uncertainty in measurement during a period of rapid change in economic activity," it added.

Rattled by the global financial crisis, the European economic major is reeling under severe recession and the country's GDP shrank 4.9 per cent in the first three months of this year compared to the first quarter of 2008.

"Output of production industries fell 5.1 per cent, while service industries fell by 1.6 per cent, with negative growth in all sub-industries except government and other services which grew by 0.2 per cent.

"Construction output fell 6.9 per cent compared with a fall of 5.0 per cent in the previous quarter," the statement noted.