Tuesday, October 03, 2006

Opinion piece in Monday's Diena

Monday's Diena newspaper had an opinion article by Peteris Strautins in which he expresses worries similar to my Saturday's post, but in much more outspoken form. The article is now in the subscription-only archive but here is a quote:

Ja finanšu tirgi neceretu, ka Latvija parskatama nakotne tomer pievienosies eiro, mes savu riskanto ekonomikas raditaju del jau sen butu piedzivojuši kapitala begšanu. Virkne Latvijas ekonomikas arejo indikatoru ir krietni sliktaki neka Austrumazijas valstis pirms 1997.gada lielas finanšu krizes. Krizes skartajas valstis tekoša konta deficits videji bija 5% no IK, ka jau teikts, Latvija tas patlaban ir 18%. Varbut psihologisko luzumu radis 20% robežas parsniegšana?

If financial markets did not hope that Latvia would join euro in foreseeable future, we would have experienced capital flight long ago, due to our risky economy. Several of Latvia's external economic indicators are much worse than in East Asian countries before the big financial crisis of 1997. In the affected countries, the current account deficit before the crisis was, on average, 5% of GDP. As I already said, it's now 18% in Latvia. Maybe, there will be a psychological breakpoint after the deficit exceeds 20%?

1 comment:

Pilland said...

Just to complete Your interesting report, give a look at my collection of views of political borders from all the world.
My address is http://www.pillandia.blogspot.com
Best wishes!