‘Internal Devaluation’ keeps lid on spending

Nov 12, 2009
Staff and wire reports

RIGA - Third quarter GDP numbers for Latvia show the economy crumbled 18.4 percent compared to the same period last year, the biggest decline in the European Union, reports Bloomberg. The government’s commitment to maintaining the national currency peg to the euro is forcing businesses and state enterprises to continue with cut jobs and wage reductions, the ‘internal devaluation,’ to stay alive. The contraction compares with an 18.7 percent plunge in the second quarter, year-on-year. T ...

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