The Scottish Government has warned more money needs to be spent to help the economy recover after the announcement the UK economy is back in recession.
The GDP statistics were published on Wednesday, showing a 0.3% fall in the fourth quarter of 2011. It means the economy is back in recession and is Britain’s first double-dip since 1975.
John Swinney, finance secretary, said the UK government’s austerity programme was not working and more cash was needed to boost the economy.
During Prime Minster’s Questions, David Cameron said the figures were "very disappointing" but the government would be sticking to their programme.
Mr Cameron said: "These are very, very disappointing figures. I don't seek to excuse them, I don't seek to try to explain them away.
"Let me be absolutely clear. There is no complacency at all in this Government in dealing with what is a very tough situation, which frankly has just got tougher. It is very difficult recovering from the deepest recession in living memory, accompanied as it was by a debt crisis."
"We have got to rebalance our economy, we need a bigger private sector, we need more exports, more investment. This is painstaking, difficult work but we will stick to our plans, stick with low interest rates and do everything we can to boost growth, competitiveness and jobs in our country."
But Mr Swinney said positive indications in the Scottish economy would be hampered by Westminster’s actions.
He said: "Today's UK GDP figures provide yet further evidence that the UK Government must act immediately to stimulate economic growth as their current austerity approach is driving the UK back into recession.
"Taking a longer term look at the figures, the UK economy is no further forward than it was 18 months ago, indeed the headline growth rate in the UK has been negative for 4 of the last 6 quarters.
"We do have some positive indications in the Scottish economy but we cannot escape the impact of the UK approach and more capital spending is vital to keep pushing jobs and recovery forward. We can't risk allowing Westminster to damage the recovery we are building in Scotland.
"The Scottish Government has already written to the Prime Minister with the list of £300m of 'shovel-ready' projects across Scotland to boost growth and support thousands of jobs. It is time for the Chancellor to recognise the compelling case for additional infrastructure investment to build sustained recovery.
"With the full economic and financial powers of independence we could do even more - but in the meantime the UK Government should be helping, rather than hindering, the process of recovery."