The UK economy will contract 4.7% this year, according to the Organisation for Economic Co-operation and Development (OECD).

This figure is worse than the UK Treasury's prediction that the UK economy will decline by 3.5% this year.

However, the OCED has said that it expects America and the eurozone to exit recession in the third quarter of the year.

"We clearly have a recovery at hand that seems to have materialized a little earlier than we expected because financial conditions have improved more rapidly than we assumed a few months ago," said Jorgen Elmeskov of the OECD.