The UK economy will shrink by 3.5% during 2009, the Chancellor has predicted.
Presenting today's Budget package, Chancellor Alistair Darling also claimed the economy will begin to grow again by the end of this year.
Darling expects the UK economy to grow 1.25% in 2010, with 2011 growth at 3.5%. However, the growth figure for 2011 was met with laughter from MPs.
However, the near future is expected to be dire, with a further 1.6% fall in GDP expected for the first quarter of 2009, mirroring the last quarter of 2008.
Inflation is expected to hit a low of -3% in September, before climbing to 1% by the end of 2009.
The Chancellor says there will be "no quick fixes or overnight solutions to economic problems," but claimed the British economy was resilient and well placed for recovery.
On the UK's public sector deficit, which climbed to over £90bn in the past year, Darling claims debt levels will be halved within the next four years, despite vast bank bailout costs.
Darling says cuts to public services would harm the economy and increase debt in the long term, and will ease the public finances by 0.5% in 2009/10, before tightening budgets by 0.8% for the next four years to reduce the deficit.IFAonline
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