"The Agony Continues - Latvian GDP Falls By 18% by Edward Hugh
Latvia’s economy shrank by nearly a fifth (year on year) in the first quarter, according to the latest flash estimate from the national statistics office. Obviously this is a dreadful state of affairs, and illustrates just how difficult the country’s chosen adjustment path is proving to be.
Gross domestic product fell 18% year-on-year, and Statistics Latvia reported that the decline was broad-based, with manufacturing down 22%, retail trade down 25% and hotel and restaurant services output 34% lower from a year earlier. “The economic situation is of course very serious,” Latvian Prime Minister Valdis Dombrovskis reportedly told a press conference in Stockholm, and who could disagree.
GDP fell by an annual 10.3% in the fourth quarter of 2008, while the economy contracted over the whole of 2008 by 4.6% following 10% growth in 2007. This is evidently what is meant by the expression “boom-bust”.
(Longer post to follow soon)"