The right way is to break down the growth by quarters of 2007, as Edward Hugh did in this post. Doing that with the revised estimate gives:
- Q1 2007 (compared to Q4 2006): +2.4%
- Q2 2007 (compared to Q1 2007): +2.7%
- Q3 2007 (compared to Q2 2007): +2.8%
- Q4 2007 (compared to Q3 2007): 0.0%.
Latvia is in an extremely sharp economic slowdown. It's not yet felt here in everyday life, but, soon, it will be.
In another bad news story, Latvian Statistics estimates that inflation is at 16.7%/year now. Most of last month's inflation is, however, taxes on tobacco and higher heating costs. So, the local inflationary spiral may be just simply bad, not horribly bad.