The UK may have already slipped back into recession, economic forecaster the Item Club has warned.

The think tank said gross domestic product shrank in the final quarter of last year and would contract again in the current three-month period.

It said that even if the eurozone could resolve its problems the UK economy would grow by just 0.2% this year.

It also predicted unemployment would rise by a further 300,000 to just below three million people.

via BBC News – UK in recession says Item Club economic forecasters.