OREANDA-NEWS. September 09, 2008. The specified information on the GDP changes in the second half of 2008 was published, showing that the annual growth of the DGP comprised only 0.1%, reported the press-centre of Latvijas Krajbanka.

It is no doubt that there is not surprise, because every day we can feel that the economy is not developing with such tempos as it was before. Several sectors are even showing decline of development tempos. The rapid consumption decline has influenced retail trade heavily, which after two-digit increase, this year is experiencing the tempo decline. Less in percentages, but nevertheless decline is observed also in agriculture.

The decline of economic tempos in Latvia is influenced also by outer factors. According to the latest data, the economic development of the main Latvian trade partners is showing the signs of slowdown. It is no doubt that unfavourable situation in European economy and decrease of activity in CIS countries have influenced badly the goods manufactured and exported in Latvia.

We cannot omit the situation in the civil engineering: after rapid increase the construction amounts of dwelling and trade buildings are declining rapidly. Nevertheless, thanks to the construction of highways, roads and industrial buildings, the sector is still showing a considerable growth.

Such a data confirms our prognosis that during several quarters Latvian economy can experience also negative increase. At the same time it is far too early to deduce that Latvian economy is experiencing severe crisis.

On the one hand the slowdown of economical tempos is very painful process, which is accompanied with companies’ bankruptcies and profit decline. On the other hand, during the recent years development of Latvian economy was unbalanced, and it was clear that such a scenario couldn’t last for long.

Nevertheless – besides the slowdown of economic activity, which can be observed now, it would be hard to further essential changes in economical structure. The today’s challenges are the tools for the effective long-term economical development.