BRITAIN is officially in a double-dip recession for the first time since 1975.

The Government’s belief that historically low interest rates and the weak pound would be enough to help the UK economy recover has been proved wrong.

The grim figures wrong footed economists who expected a sliver of growth – just enough to enable the country to avoid the dreaded doubledip downturn.

These figures will pile pressure on the Government to slow the pace and scale of its deficit reduction plan.

Britain is lagging behind. Germany and the US are growing strongly again. France is doing better than us.

Only Italy and Spain are doing worse.

However, what does a double-dip actually mean? Would we really be any better off had the economy expanded by a miniscule 0.1 per cent rather than contracted by 0.2 per cent?

Britain’s gross domestic product figures are notoriously unreliable. Often they are revised upwards when the numbers have been thoroughly crunched.

In the North-East, manufacturing is doing rather well. Nissan is investing in an unprecedented two new models, steel-making has returned to Teesside and OGN North Sea is set to manufacture wind turbines on Tyneside.

Of course, behind these big headlinegrabbing announcements there are scores of medium and small businesses fighting for survival.

In the medium-term, the Government may need to re-examine its growth strategy.

For now, it’s important not to panic.