Jump to content
House Price Crash Forum
Sign in to follow this  
Deckard

Which Eu Country Saw Gdp Plunge 22.4% In Q2 09 ?

Recommended Posts

Lithuania

http://www.bloomberg.com/apps/news?pid=206...id=a_WUvUld4B3s

July 28 (Bloomberg) -- Lithuania’s economy plunged a preliminary 22.4 percent in the second quarter, the worst recession since 1990 independence, as output crashed and retail sales slumped.

The decline, the deepest in the European Union, compares with a revised 13.3 percent contraction in the first quarter, the Vilnius-based statistics office said in an e-mailed statement today. The economy grew 5.2 percent in the same period last year. The median estimate of four economists in a Bloomberg survey was for a 17.7 percent decline.

The Baltic economies of Estonia, Latvia and Lithuania are collapsing after a real-estate bubble burst, cheap credit evaporated and slacking demand in foreign markets undermined exports. The three countries, which had the EU’s fastest growing economies from 2004 to 2006, now have the steepest declines of all developing regions, the World Bank said on June 22.

“The second-quarter GDP contraction was led by faltering industries and declining consumption,†the statistics office said in an e-mailed statement today.

The economy shrank 18.1 percent through the first six months, it said.

Ouch, that is a proper CRASH :o

The economy may contract between 15 percent and 20 percent this year as bank lending remains paralyzed and demand for the Baltic nation’s exports wanes, Finance Minister Ingrida Simonyte said in an interview on July 16.

Was it a good idea to peg their currency to the Euro, I wonder ? :rolleyes:

The government has not followed neighboring Latvia in requesting a bailout from international lenders such as the International Monetary Fund. Simonyte said she expected no such need in the near term. Still, she didn’t rule out that the country may need aid in the future.

:blink: What ? How bad does it have to get then before they knock on the IMF door ?

Share this post


Link to post
Share on other sites
Lithuania

http://www.bloomberg.com/apps/news?pid=206...id=a_WUvUld4B3s

Ouch, that is a proper CRASH :o

Was it a good idea to peg their currency to the Euro, I wonder ? :rolleyes:

:blink: What ? How bad does it have to get then before they knock on the IMF door ?

Well, it's not particularly surprising given that their economy has been expanding at breakneck speed for the past few years (7-8% per year since 2004). Easy come, easy go.

Share this post


Link to post
Share on other sites
Close - I said Latvia before opening the thread.

That's got to hurt.

Latvia are currently wrestling with the IMF over the terms of the loan

http://www.bloomberg.com/apps/news?pid=206...id=ama.UvIqAYZo

July 28 (Bloomberg) -- Latvia and the International Monetary Fund reached a preliminary agreement yesterday paving the way for the first loan payment from the Washington-based fund since December.

The review may unlock about 195 million euros ($285 million), which the IMF withheld in March after the Baltic country failed to commit to budget cuts, the fund said in an e- mailed statement.

Share this post


Link to post
Share on other sites

Looks like there will be plenty of cheap properties to snap up in Lithuania soon then, using all our newly printed QE cash!

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   285 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.