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interneta bibliotēka
Atlants.lv bibliotēka
The Economic Crisis in Latvia
Faila izmērs:
546 KB


Publicēts: 18.05.2010.
Valoda: Angļu
Līmenis: Vidusskolas
Literatūras saraksts: Nav
Atsauces: Nav
Darba fragmentsAizvērt

Latvia since its establishment has had a variety of economic problems, starting with a weak industry, ending with the various financial problems. Economists have struggled with them all time. Sometimes they get success. Each Latvian resident has experienced this problem effects.
  Latvian economy is characterized by inefficient public administration, gentle justice system. Latvia also needs to import a large part of the necessary raw materials and energy. Availability of financial resources leads us to the rapid economic growth, which exceeded the long term supported rate. It led to economic overheating, and the most important indicators of it were high inflation, shortages of labor and huge current account deficit.
Also have to mention that the wage growth in several years exceeded productivity growth. Loss of qualified labor and different kind of European Union rules prevented the development of Latvia. Latvia hit particularly hard, after the international financial crisis in 2008 of September. It was because of the Latvian government had not established any reserves in the rapid economic growth years. Because of these problems current economic picture is so bad. At the beginning some politicians tried to stifle it in the public. They were showing us a very high GDP growth, but these problems, however, was too high to keep silent about them.
Banks made it easy to people to get credits. Lot of people used opportunity to get credits. They bought or build new houses. Demand was growing rapidly and because of that also inflation was growing. Banks get good earnings. But this burble split when financial crisis started. Banks didn’t give easy credits anymore, wages was decreasing and many people cannot pay back their credits and because of that they lost their new uses. …

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