European map
City snapshot
Latvia has fastest growing economy in Europe
Latvia's economy is now the fastest growing in Europe. Latest figures show the Latvian economy grew at an annual rate of 11.3 per cent in the second quarter. The result surpassed analysts' expectations and tops the first quarter growth of 11.2 percent. the growth is not without problems. Bankers fear the country's economy is overheating as inflation rises.
It was announced recently that annual inflation now sands at 9.5 percent, also the highest in the EU. Biggest price rises have been in tobacco, hotels and financial services. As prices rise the demand for higher wages grows and some analysts warned of steep falls to come. Tourists may also turn to cheaper countries as prices soar. Latvia's GDP soared 11.9 percent in 2006.
This article was written for TravelSavvy Europe by Robert Allcock. If you know of an interesting European travel related news story, please get in contact.
