Is Latvia First Country in World to Fall Into Depression?

Greg Neuman of GFC Economics argues in his latest newsletter that Latvia is the first country in the world to fall into depression:

A depression is usually defined as a contraction in GDP of 10% or more from peak to trough. On that definition, Latvia was the first country to fall into depression in response to the global credit crisis. Last week, it was reported that Latvia’s real GDP fell 10.5% in the year to Q4.

He concludes, even  more bleakly, that Japan isn’t far behind on the same path.

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