Tuesday, March 04, 2008

Consumption boom? What boom?

This is a few days old but I have not seen it covered elsewhere. Latvian Statistics office reports that retail sales in Latvia decreased by 0.7% in January 2008 (compared to January 2007).

Just a half year ago, sales were growing by 24%/year and every area of the Latvian economy was booming. Now, the boom is over and the economy is slowing down at a breathtaking speed. I suspect nobody has a good idea what will happen next.

Estonia is heading in the same direction. Lithuania is still booming. My guess is that they are about half a year behind Latvia.

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