The UK has entered a double dip recession.

Latest figures from the Office for National Statistics show that GDP shrank by 0.2% between January and March, following a 0.3% contraction in the fourth quarter of last year.

Eric Stoclet, chief executive for Crown Mortgage Management, said: “The fact the economy is in recession may come as a surprise to economists but to most people it does not. With inflation stuck well above wage growth, most consumers are losing purchasing power by the day. If one adds to that consumer deleveraging both by choice and through lack of sources of credit, a consumer led recovery is not very likely.

“In the current environment with public and private sector and the consumer eager to cut their debt levels, finding the elixir of recovery is going to be tricky.

“Keynesian advocates would argue for more government investment in infrastructure but that as well is not forthcoming.”