Financial services, one of the biggest sectors of the UK economy, has been hit by a severe downturn and is set to crash by the end of the year.
The UK is now forecast to fall into recession and hit by around a one in five chance of a third straight year of economic stagnation.
Business Insider reports that the UK has experienced its worst fall in employment since World War II.
It also has been hardest hit by falling inflation, which has fallen from 3.7 per cent to 2.7 percent over the past year.
Business Secretary Vince Cable said in a speech on Tuesday that Britain’s economic recovery was “in tatters”, as it has been pushed into a “dangerous corner”.
“We need to focus on what the economy is capable of doing now and what we need to do to get the recovery back on track,” he said.
He added that “the only way out of this is by taking urgent action to get our economy back on its feet”.
The UK’s economy is currently forecast to shrink by a staggering 1.8 per cent next year, which is forecast to see a 2.2 per cent decline in real GDP.
That will put the UK into recession for the first time since 1945.
The Office for National Statistics said in January that the unemployment rate for 18-24 year olds in the UK had now reached 17.5 percent, down from 20.5 per cent at the end.