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According to the National Institute for Economic and Social Research (NIESR), there will be 4.3 per cent shrinkage throughout the 12-month period, the sharpest for over 70 years.
The forecast has been made in the industry body's quarterly economic outlook and is greater than predictions recently made by both the International Monetary Fund and the government, something that those involved in stock market trading may wish to note.
Speaking to the Financial Times, NIESR economist Simon Kirby stated: "If net trade fails to pick up, we could see a second year of economic contraction."
He noted that the slump in global trade was taken into consideration when making the prediction, adding that this has "collapsed by more than forecast".
Recently, the European commission said that economies around Europe will contract by approximately four per cent this year, before growing 0.4 per cent over the next 12 months.
