Official government figures have today confirmed the UK is now in recession for the first time since 1991.

The generally-used technical definition of a recession is two quarters running of negative economic growth. Gross domestic product fell by 1.5% in the last three months of 2008 after a 0.6% drop in the previous quarter. It represents the biggest quarter-on-quarter decline since 1980, and a 1.8% fall on the same quarter a year ago.

The figures are from the Office for National Statistics (ONS), showing that manufacturing contracted the most by 4.6% despite hopes that the weak pound would help exporters. This worse than expected shrinkage sent sterling to a 24-year low against the dollar, with one pound buying $1.355. (guess we’re not going on holiday to the US then for a while!)

How long will this last?
The last two recessions lasted for just over a year and many forecasters believe a recession could stretch into 2010 and be as severe as that of the early 1990s.

What does this mean for most of us?
Well I wouldn’t expect a pay rise any time soon, and I would be fearful of job losses as most companys will be cutting their workforces.
Crime will be on the increase too as many people will resort to theft.
Apparently drug additions go up in a recession.
The range of choices when you shop will see a decline too.

On the positive though things should get cheaper in terms of food and fuel as the government does what it can to help struggling familys and boost the economy.

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