BUDGET 2009: Darling predicts GDP to fall 3.5% in 2009

The chancellor Alistair Darling says he predicts UK GDP to contract by -3.5% in 2009.

In his second Budget speech, Darling says growth dipped -1.6% in the final quarter of 2008 and he anticipates a similar amount to fall in Q1 2009.

But he says he expects the economy to grow by 1.25% in 2010 and 3.5% in 2011.