Chancellor George Osborne: GDP figures are no surprise

UK economic activity shrank by 0.2% in the last three months of last year according to official figures.

It marks a sharp drop in economic activity from the third quarter of 2011, when gross domestic product (GDP) expanded by 0.6%.

The figures, from the Office for National Statistics (ONS), are a preliminary estimate, which could be revised either up or down by 0.2%.

Reacting to the news, Chancellor, George Osborne, said the figures were disappointing but not a surprise.