If GDP also shrinks in the first quarter of 2013, then the economy will be back in technical recession - the third recession in the space of five years. However, this still remains speculation. We will not know for sure whether the economy is back in recession for another three months.
To hope that the commitment to cutting public spending in the name of deficit reduction will be reversed in the face of continuing recession and little effect on the deficit currently seems highly optimistic - the major political parties united as they are in almost unwavering support for it. So long as it continues so will recession.