Wednesday, May 16, 2012

Latvia's Economic Growth Surprises Analysts


Austerity is increasingly--and understandably--a dirty word in Europe. But proponents of the unpopular measures are pointing to one (and apparently only one) seemingly unlikely success story: Latvia. Its 6.8% GDP growth in the first quarter of 2012 has exceeded all forecasts following the worst recession in Europe, when the country's GDP collapsed by nearly 25% in 2009-2010.

In related news, Latvia and China are pledging to boost military ties, and critics are accusing Latvia of being an unreliable NATO member.

Latvia joined the alliance in 2004, along with Lithuania, Estonia, Slovakia, Slovenia, Bulgaria and Romania. The last two nations to join NATO were Albania and Croatia in 2010.