GDP contracted by 1.9% during the first three months of 2009 – a much sharper decline than the 1.5% expected by many economists.

These figures will be of further embarrassment to the embattled chancellor, who in this week's Budget predicted a contraction of 3.5% this year.

The International Monetary Fund has predicted that the economy will contract by as much as 4.1% this year.

Vicky Redwood, an economist at Capital Economics, said: "This contraction is more than many were expecting. We believe that the economy will contract by 4% or more this year."

Redwood predicted that recovery would not come until the second half of 2010 and that the total contraction would be around 6%.

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