UK GDP declined by 0.2 per cent in the final quarter of 2011, according to official figures from the Office of National Statistics. The figures announced today confirm the forecasts of economists that the UK economy would shrink in the last three months of 2011.

The disappointing quarter came after a pick up in economic activity in the third quarter of 2011, when gross domestic product (GDP) expanded by 0.6 per cent.
The decline for the fourth quarter is a preliminary estimate from the ONS and this figure could eventually be revised up or down. If the figure is confirmed and there is a further decline in the first quarter of 2012 it will mean the UK economy has slipped back into recession.
On the positive side, the ONS figures show that the UK economy expanded overall by 0.9 per cent during 2011.
The increase was in line with government targets
ONS chief exconomist Joe Grice, said: the figures were not entirely unexpected dud to the economic situation in several parts of the world and the eurozone crisis.

Chancellor George Osborne said the figure was disappointing while Ed Balls MP, Labour's shadow chancellor, blamed the fall in GDP on government's cuts in public spending, which was stifling domestic demand.
The quarterly fall in GDP was the first decline since the last quarter of 2010, which was hit by severe weather.
The new figure was slightly worse than most economists expected. Many had predicted a 0.1 per cent fall in activity.
In terms of different sectors of the economy, there was a 0.9 per cent fall in manufacturing, a 4.1 per cent drop in electricity and gas production (largely due to mild weather) and a 0.5 per cent fall in construction. The services sector, which accounts for two thirds of the economy, was static.
Despite the downturn many economists believe the dip will be mild and temporary and the UK will still show modest growth in 2012.