UK confirms GDP shrunk 1.9 pc in Q1

The Bank of England is highly uncertain about the future prospects of the economy,indicating growth could restart around the turn of the year but cautioning there could be more weakness to come if banks don8217;t increase lending.

The Office for National Statistics second estimate of economic activity showed GDP fell 1.9 per cent on the quarter,its biggest drop since the third quarter of 1979. That was unrevised from the previous reading and in line with forecasts. On the year,GDP fell 4.1 per cent the biggest fall since the last quarter of 1980.