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Latvia adopted the euro on 01 Jan. and is already seeing benefits.
Its GDP in Q4 expanded at an annual pace 6.6%...the fastest pace in more than three years on record export growth....since Q2 of 2007.
The $19 billion economy saw growing demand by Sweden and Finland demand for its electronics and machinery exports.
Full-year 2010 growth was 3.1 percent.
A Baltic analyst claims :“Estonia is a clear example of where the so-called non- Keynesian fiscal consolidation effect occurred.The positive effect from significant fiscal consolidation outweighed the negative effects on growth from the public spending cuts and tax increases.”
