Britain

3Q08 GDP performance: -0.6%
4Q08 GDP performance: -1.5%
Unemployment rate: 6.3%
Public sector debt: 43% (as percentage of 2007 GDP)

So far, Britain is still on course to be the worst performing of the major advanced economies in 2009, with a drop in GDP of about 3%—the worst since World War II. At its nadir, the economy could fall by 4% or more on an annualized basis, according to the Bank of England. The shocking 1.5% contraction in the British economy in the last quarter of 2008 was actually, we now know, milder than the German slump. Still, the weight of Britain's highly indebted households and public sector will hold back growth, living standards, and employment for years to come.