Strong Latvian Recovery Continues

Despite the fact that most other European economies are contracting, Latvia continues its strong economic recovery, with GDP increasing during the third quarter this year by 1.7% compared to the second quarter and with 5.3% compared to Q3 2011. Compared to the cyclical low in Q3 2009, GDP is up by as much as 15.7%. If you consider the drop in its population, real GDP per capita is up as much as roughly 18% in three years.

This must clearly be due to the fiscal stimulus and devaluations that Keynesians in 2009 assured us was necessary for the Latvian economy to recover....oh wait, I forgot, they didn't do that and instead reduced government spending and maintained a fixed exchange rate.