Few countries have been as badly hit by the global downturn as Latvia.
According to a flash estimate released by the statistical office, the Latvian economy plunged by 18.4% y-o-y during the third quarter, which although below the consensus contraction of 19-20%, was nonetheless a horrific rate of decline. Indeed, this would mark [Read more...]
As the Latvian government proposes a bill to change mortgage regulation to ease the debt burden on households, Bruce Jeffery argues that the country may be one step closer to eventual devaluation of the currency peg.
Having recently returned from a week-long holiday in the Latvian Baltic sea resort of Jurmala, I felt the stark contrast between a wonderful summer holiday destination and the signs of an epic economic crisis. On the one hand I was impressed at the hospitality and pleasantness of this tiny Baltic Sea town, 20km from the [Read more...]
For several months now, I have run with the view for a devaluation of the Baltic and Bulgarian currencies. The core scenario has always been that such a move would likely not take place until end-2009/early 2010, but today we got a taste of just how acute the risks are of a much quicker and [Read more...]
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