UK 'due for worst recession' since '90

The UK economy may contract at the fastest pace since 1990 in the current quarter as the recession intensifies, the National Institute for Economic and Social Research (Niesr) said.

Gross domestic product fell 1 percent in the three months through November and will probably plunge more than that in the last three months of the year, the London-based institute, whose clients include the central bank, said in a statement yesterday. The economy last shrank at such a speed in the third quarter of 1990, when it contracted 1.2 percent.

"The figures make clear that the rate of output decline is accelerating," Niesr said in a statement.