According to the flash estimates, Latvian GDP contracted 19.6% on yearly basis in Q2 2009.

Latvian Statistical Office reports:

'In the 2nd quarter of 2009 decline of economic development continued both in fields of manufacturing and of services. Major volume decreases were observed in retail trade - by 28%, in hotels and restaurants services - by 35%, in industry - by 19%. The drop of value of collected product taxes continues to maintain negative impact on GDP.'

This is another bad news from Baltics after Lithuania reported 22.4% decline in the economy in the end of July.