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BUDGET 2009 NEWS: UK economy set for 3.5% fall in 2009

Chancellor Alistair Darling has revealed the UK GDP fell by 1.6% per cent in the first quarter of 2009 and predicts the economy will contract by 3.5% at the end of 2009.

Darling also predicted that GDP would rise to 1.25 per cent in 2010 and then up to 3.5 per cent in 2011.

The Chancellor admitted that national debt for this year will total 59 per cent of GDP, 3.5 per cent of which came from the bailout of the failed banks. he said the country will borrow £175bn this year as a result, or 12.4 per cent of GDP. Darling predicts the national debt will begin to fall by 2015.

Darling said: “Because of the underlying strength of our economy growth should resume by the end of the year.

“There are no quick fixes, there are no overnight solutions but we must make sure we deliver. We need a clear path of recovery in the UK.”

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