Friday, October 22, 2010
That's what I call a recession
Posted by David Smith at 10:00 PM
Category: Thoughts and responses

I've been in Riga, Latvia, speaking at a conference organised by Latttelecom, the country's main telecom firm. Latvia suffered an 18% drop in GDP last year and a peak to trough fall of more than 25%, making it the worst crisis-driven recession in the European Union, and possibly the world.

The good news is that recovery appears to be under way, though another set of austerity measures is due, and that the current account has staged a remarkable turnaround, from huge deficit to surplus. The bad news is that it takes a long time to get back after a recession like that. But Latvia's still standing.