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Latvia: Immigration law amendments
26th May 2014
Latvian parliament adopted amendments to the Immigration Law in Latvia on May 8th, 2014. The amendments will come into force on September 1, 2014. Changes refer to the minimum thresholds of the property that qualifies for temporary residence permit.

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Latvian banking crisis

The 2008 Latvian financial crisis, which stemmed from the global financial crisis of 2008 - 2009, was a major economic and political crisis in Latvia.

Latvia stands out as the East European country hit by the global financial crisis the hardest; it lost about 25 percent of its GDP from 2008 to 2010. It was also the most overheated economy before the crisis. But in the second half of 2010, Latvia returned to economic growth.

Latvia has a population of 2m and its annual GDP is €23 billion ($30 billion). But the trouble experienced by this Baltic country since 2008, as it kept the lat, its official currency, fixed to the euro while fiercely tightening fiscal policy, have sparked a big dispute among most critics.

Latvia has been an object of intense attention during the financial crisis because of the economic policies it put in place to get its economy back on track. By maintaining its currency peg, adjusting through internal devaluation and front loading fiscal austerity, this nation of 2 million is now, 5 years later, back on a strong economic footing, although it may have been quite painful to get there.

Latvian policymakers, like those elsewhere, reacted too late to the boom; had good relations with parent banks; avoided a large decline in output thanks to deviations from strict currency board rules; had quick productivity gains; and for political purposes, output growth may matter as much or more than its level.

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