Thursday, February 14, 2008

Signs of economic slowdown in Latvia

In two news stories, one next to another in the economy section of First, today's "Dienas Bizness" reports that several Latvian manufacturers of concrete are approaching bankcrupcy. As the Latvian housing bubble is bursting, some of the new construction projects are being cancelled. The price of concrete has dropped 15-20% and many manufacturers are struggling to stay alive.

The second story reports increasing lines for milk in farmers' markets. With food price inflation running at 24.8%/year, people are turning to market as a cheaper alternative to grocery stores. I have been hearing that from friends for a couple of months and now it's making the news stories, as well.

The slowdown will probably get worse before it gets better. Developing...

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