Financial Crisis in Poland and Latvia

The global financial crisis, which almost each country is facing right now, began in July 2007, in the USA. However, in Europe financial crisis intensified in Autumn 2008. It resulted in dislocation of money, interbank and credit markets due to collapse of confidence among market participants, related largely to uncertainty about the final size and location of credit losses.Each country weathers crisis in different way, but the overall situation in financial markets remains far from normal. The aim of this paper is to present condition of Polish and Latvian economy. Show the extend of economic crisis in both countries and the way how are these countries dealing with global recession. The first part is introducing problem of financial crisis in Poland. In the beginnig, it points out macroeconomic performance of Poland in the last few years, as well as the effects of present slowdown in economy. Next issue is Polish financial sector as a sector , which is affected the most by crisis. In the end,it presents steps which were taken by Polish government to fight against negative outputs of crisis. The second part presents current and previous economical situation in Latvia, pointing out the reasons why did successful economy of Latvia overheat and what should be done next. It starts with macroeconomic overview of Latvia, together with explanation of all changes in ratios and indexes. However, the main part of paper about Latvia is concentrating on credit expansion and property bubble caused by it, which were the main reasons of overheated economics. In the end, there are given certain actions,which are aimed in order to fight with crisis. All data and facts presented in paper are written on the basis of collected articles, reports and surveys.