Latvia's GDP fell by 18 % in the first quarter of 2009 compared to Q1 2008. Industrial output as a component of GDP fell by 22 %, retail sales were down 25 % and the hotel and restaurant sector declined by 34 %. This is further evidence that the country is on its way to economic collapse, with a complete disruption of public services now determined no longer by demands of the International Monetary Fund (IMF), but by a shrinkage of the tax base that will make even the drastic budget cuts now being proposed insufficient -- because even that level of public spending will be unsustainable. More in this video commentary
3 comments:
I really enjoy your apocalyptic visions :). Of course, it would be interesting to see this "economical collapse", which could hopefully bring new hope of sustainable development, but I think that reality will be just more miserable - no collapse, no social unrest, just lower wages, unemployment, somehow functioning public services, grim faces, urlas etc. Maybe after another 20 years...
Great stuff - your summary is spot on. Shame none of the "experts" the government likes to consult so regularly can see hat's happening with such clarity, even though it should be blindingly obvious.
Greetings from the Failed State of the US. Enjoyed your commentary on Latvian economy. Our GDP here looks better, but we're down 38% year over year on tax revs this month. Everyone and his brother is going Galt.
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