Latvia’s economy posts second straight quarter of growth
By admin at 9 August, 2010, 6:36 pm
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RIGA, Latvia (AP) – Latvia’s economy, one of Europe’s most troubled, posted its second straight quarter of growth in the April to June period, the nation’s statistics office announced Monday.
Economic activity in the second quarter increased a slight 0.1 percent compared with the first three months of the year, according to Latvia Statistics’ flash estimate. During the first quarter the economy registered a 0.3 percent quarterly uptick.
However, on an annual basis the economy fell 3 percent as the construction and services sectors continue to languish, the statistics office said. By comparison, manufacturing is up 14 percent year-on-year in the second quarter.
Latvia’s gross domestic product plummeted 18 percent last year — the worst in the European Union — as the country recovered from four years of strong growth that saw the economy expand by nearly 50 percent.
As the economy overheated, the country of 2.3 million became insolvent and to stay afloat was forced to borrow euro7.5 billion ($10.5 billion) from international lenders in December 2008.
Government officials and analysts largely agree that the worst of the crisis is over and that the country could return to annual growth in 2011. Latvia’s economy is expected to shrink about 2 percent this year.
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