Pound Craters After Latest Grim Stats
British currency falls to $1.56 amid recession fears
By Jason Farago,  Newser Staff
Posted Oct 24, 2008 5:08 AM CDT
Gordon Brown leaves 10 Downing Street in London to attend Prime Minister's Questions, Oct. 22, 2008. Brown acknowledged for the first time Wednesday that Britain is likely to enter a recession.   (AP Photo/Matt Dunham)
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(Newser) – The British economy shrank by 0.5% last quarter, all but confirming that the UK is in its first recession since 1991, reports the Times of London. The decline is greater than expected, and this week both the prime minister and the head of the Bank of England acknowledged that a recession is likely. The news sent the pound falling, dipping to $1.56 for the first time in five years.