Pound record decline against the Euro at €1.1391

Pound Sterling has tumbled to an all time low against the euro this morning at €1.1391, this comes as economists warn that the recession will be hitting the UK a lot harder than first expected and predict the outlook for 2009 is even more gloomy.

It’s been reported by the National Institute of Economic and Social Research that in the three months to November the UK gross domestic product shrunk by 1 percent.

Reports also show that a 2 percent fall in GDP is to be expected next year, according to the Chief European and UK economist at HIS Global Insight, Howard Archer.

The UK retail businesses will be hit the hardest by the pounds decline against the dollar, pushing the price of imported goods and costs of travelling. If the government makes further cuts to the Base Interest rate it’s likely the pound will fall to €1.07 against the euro.

Source: Guardian