In a surprise announcement today, Dienas Bizness (DB) concluded that there are signs of a recession in Latvia. DB cites findings of experts, who surmise that the ‘property bubble’ and ‘excessive spending’ may have had a negative effect on the Latvian economy. As a result, Latvia's gross domestic product decreased more than 23 percent this year, and the economy has fallen to the level of 1937. "This means that Latvia is undergoing what we economists call a ‘recession,’" Teodors Mulkigins, a Swedbank economist explains.
“In a ‘recession,’" he said, "your neighbor loses his job, your driver takes a pay cut, and Swedbank gets your Porsche Cayenne. Then, your driver becomes your gardener, your neighbor becomes your driver, and you get his Cayenne. It has to do with macroeconomics, regression analysis and other big words. But thank goodness it's not a 'depression.'" he said. "Because in a 'depression,' you lose your job, your house, and your other house. You move into your uncle’s barn and become his driver. He has a Moskvich. You eat mostly dirt and pig ears, and eventually vote for Andris Skele, who promises to privatize everything he doesn’t already own. You see the difference?” Mulkigins asked, “in a recession, you don’t have to vote for Skele.”