The UK economy will fall into recession this year, according to the Organisation for Economic Cooperation and Development (OECD). The Paris-based think tank predicts that the UK economy will shrink at a rate of 0.3% in the third quarter, and by 0.4% in the fourth. According to official figures, the UK economy did not grow at all in the second quarter of 2008. The OECD forecast is the gloomiest yet for the UK economy by an official organisation. In its latest report, the OECD says that the UK economy will grow by just 1.2% for the whole of 2008, a sharp reduction in its earlier forecast of 1.8% made just two months ago, and less than the 1.4% predicted by the IMF.

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