In 2008, Latvia was widely seen as an economic “basket case,” a textbook example of a boom turned to bust.
From 2005 to 2007, average annual growth had exceeded 10%, the current account deficit had increased to more than 20% of GDP. By early 2008 however, the boom had come to an end, and, by the end of 2008, output was down by 10% from its peak, the fiscal deficit was shooting up, capital was leaving the country, and reserves were rapidly decreasing.
Πηγή: iMFdirect