UK economy will "decline through ? 2009"

The economy in the UK will "decline through all of 2009", it has been claimed.

Chief UK and European economist at IHS Global Insight Howard Archer explained the 1.5 per cent contraction the country saw in the final quarter of 2008 will possibly be the "deepest".

There may now be a slight improvement but it is likely there will be a further sharp decline still to come, he continued.

However, Mr Archer noted, the additional fall in rates will, hopefully, not be as extreme as the drop of the fourth quarter last year.

"We are going to decline through all of 2009," he commented, adding he believes the first half of the year will be worse than the second

Mr Archer warned it is likely there will be a contraction of one per cent this quarter.

In related news, currency strategist at foreign exchange rate specialist HiFX Marc Cogliatti stated earlier this month he thinks the sterling is "oversold and undervalued", due to the current interest rates.