New recession warning as Budget gossip builds

The dire prediction contrasts with Alistair Darling's view of the country's prospects, with the Chancellor likely to say this week that the recession should end this year. Mr Darling will, however, admit in his Budget speech on Wednesday that his prediction that gross domestic product (GDP) would only decline by up to 1.25pc, made in November, was overly optimistic and that he is now planning the public finances based on a 3.5pc fall in GDP this year. The CBI said the global economy had weakened significantly since February. The employers' body now predicts a 3.9pc fall in GDP this year...