New figures released by the Ontario government show the province's economy shrank in the first quarter.

The report says Ontario's real GDP fell 0.3 per cent between January and March because of continuing weakness in exports, lower business investment and a significant run-down in business inventories.

That's down from the modest growth of 0.1 per cent in the previous quarter.

It's the first real sign that Ontario is edging closer to a recession, which is generally defined as at least two consecutive quarters of negative growth.

Opposition critics have hammered the governing Liberals for months over the province's economic woes and the massive job losses in the manufacturing sector.

Officials say there are no changes to the government's current fiscal plan and it still expects to balance its budget.