London - The British economy shrunk by 1.9 per cent in the first quarter of 2009, the largest comparative decrease since 1979, the Office of National Statistics (ONS) said Friday.

The contraction followed a 1.6-per-cent slump in the last three months of 2008, when Britain officially entered a recession as defined by two consecutive quarters of negative growth.

Friday's figures came two days after the government predicted negative growth of 3.5 per cent for this year, and an increase in government borrowing to 175 billion pounds
(255 billion dollars) - or 12.4 per cent of gross national product (GDP).

Analysts said the ONS figures were a blow to government forecasts that the British economy would grow again by the end of this year and return to a growth rate of
3.5-per-cent in 2011.

"For that to be achieved, GDP would have to be broadly flat from Q2 onwards - yet the surveys are already pointing to another fall of 1 per cent or so in Q2," said Vicky Redwood, an economist at Capital Economics. (dpa)