Strong Baltic Recovery Continues
In Estonia, growth was 0.9% (3.6% annualized) compared to the previous quarter and 3.4% compared to Q4 2011.
In Lithuania growth was even higher than in Estonia, 1% (4% annualized) compared to the pervious quarter and 4% compared to Q4 2011.
But while Lithuania had somewhat higher growth than Estonia, it had weaker growth than Latvia, whose GDP grew by 1.3% (5.3% at an annualized rate) compared to the previous quarter and by 5.1% compared to Q4 2011.
The baltic countries have now had cumulative recoveries of about 15% since late 2009, a lot faster than any other country in the EU/EEA area. Krugman and others would no doubt have attributed the super-strong recovery to devaluation, except that no devaluation has been made....