Latvia's economy comes roaring back
Latvia's strong economic recovery continues, with GDP increasing 1.7 percent in the third quarter. And Latvia did it by reducing government and maintaining a fixed exchange rate.
German President Joachim Gauck, right, and his counterpart from Latvia, Andris Berzins, left, smile during a military welcome ceremony at the Bellevue Palace in Berlin last month. Latvia continued its robust economic growth last quarter
Michael Sohn/AP/File
Latvia continues its strong economic recovery, with GDP increasing during the third quarter this year by 1.7% compared to the second quarter and with 5.3% compared to Q3 2011. Compared to the cyclical low in Q3 2009, GDP is up by as much as 15.7%. If you consider the drop in its population, real GDP per capita is up as much as roughly 18% in three years.
This must clearly be due to the fiscal stimulus and devaluations that Keynesians in 2009 assured us was necessary for the Latvian economy to recover....oh wait, I forgot, they didn't do that and instead reduced government spending and maintained a fixed exchange rate.