The economy of Latvia with higher decrease than expected

Viliyana Filipova — Sun, 07 Feb 2010 07:41:23 +0000

Latvia’s economy has contracted by 17.7 percent in the fourth quarter of last year, which is the smallest decline for the year but more than economists’ expectations, sent Bloomberg, citing preliminary statistics. For the third quarter of the country’s economy shrank by 19 percent. Average expectations of economists polled by Bloomberg, were beginning to fall in the fourth quarter from 15.9 per cent. From the third quarter of the country’s economy increased by 2,4 percent. Revised GDP data will be published on 11 March. Latvian economy is showing signs of stabilization, the decline in industry is slowing. Increased exports to Western Europe is likely to help the country return to growth as domestic demand is under pressure because of measures introduced under the conditions for obtaining a rescue loan. “It is possible that the revised GDP data are better,” said Leah Strasuna, an economist at the Latvian unit of Swedbank AB.
Latvia was forced to apply for a loan of 7,5 billion euros to EU and International Monetary Fund after the second largest bank in the country seek state aid, a bubble in the real estate market, supported by credit burst.

Financial Communique » economy of Latvia

The economy of Latvia with higher decrease than expected