Latvia struggling amid economic crisis

As global recession looms, Eastern Europe is looking increasingly vulnerable.




Ukraine and Hungary have asked for economic support from global institutions and the European Union.

And further north, the often praised Baltic economy is coming to a halt.

From the Latvian capital Riga, Neave Barker reports.

Category:

News & Politics

Tags:

• AlJazeera
• Al
• Jazeera
• Latvia
• Eastern
• Europe
• Economy
• Recession
• Exports
• Imports
• Finance
• Institution

[ibnfahlan]

It could be that you don´t like Latvians, but to laugh on disfortune and desperate situation of the others is a barbasim my friend..Whether you are Russian or Belarussian you have to realize that Latvians are also of the humakind..

[xxxrrrxxxrrr]

Latvia is in bad situation, but EU, IMF and Latvia'a friends have shown, that we help them, while Russi ahas noone to count on bad days. And bad days have hit Russia harder then most of countries so far.

[MrILGRISO]

@bratuskins you are right only if we consider Russian big cities but in the russian countryside or villages things are very different

[MrILGRISO]

@lkrnpk devaluation means not to enter euro zone for a long time

[MrILGRISO]

@luxcretia2 Latvia has the most important heritage of natural and wild forests all over Europe. Im afraid they're going to sell everything

[MrILGRISO]

@Ausiz I believe you. I know well situation in Lithuania. Sorry but your avarage of salary is too pessimistic. Medium is about 1000/1200 litas about 300-350 euros but of course there are people who earn less. Inflation is definitely high. To rent a normal flat for a lituanian often means to waste off all monthly salary and then arrange something to arrive till the end of the month. Latvia and Lithuania are bankrupitng: about Estonia comments must be postponed

[MrILGRISO]

@nahuel89p devaluation of litas for example in Lithuania would mean not to enter the euro zone at least for the next ten years. Otrherwise not to borrow from IMF means asking blood from Lithuanian people, through cuts of public costs, like welfare and everywhere is possible, and to let foreign investments run away.

[Ausiz]

@nahuel89p Nice to hear that your country recovered. That means that there's hope for every country :)

[nahuel89p]

@nahuel89p It seems you need a nationalist political option, economical sovereignity, etc.

[nahuel89p]

@Ausiz Likewise, the IMF wasn't interested in rescuing Argentina in 2001-2002. Likewise, we faced a huge migration, many of whom are back thanks to the huge recovery. Things will be hopeless unless the state take real control of the economy. A change in the mindset is needed. Here we believed in the small state, the neoliberal state, the orthodox economics, until the crisis crashed. Now it has changed, we all agree we need a state taking control of economy, regulating, etc.

[Ausiz]

@nahuel89p Actually situation now looks almost hopeless..because EU (that is ruled mainly by UK, France and Germany) is not interested in baltic countries whatsoever..our crisis is actually even beneficial for them, because LOTS of skilled people emigrate to UK and Germany - it provides them with skilled and cheap labour. Latvians and lithuanians very quickly learn new language and adapt to new countries and don't plan to go back, because wage difference is just too big- patriotism ends quickly.

[Ausiz]

@nahuel89p There's problem in our country - currency is tied with euro (it means devaluation is almost not possible, because you must untie your currency first and that's a bit complicated. I believe same situation is also in latvia). Another problem is that politics in our both countries desperately want to have euro and that's why they avoid devaluation at all costs (because it would mean no euro in current decade). Lithuania did not borrowed from IMF, but did same strict measures as Latvia.