Most observers  BIS Review 112/2008  1  believe it would be too great a stretch to draw parallels between the current experience and that of the 1970s. Still, recent developments do pose a serious policy challenge for central bankers, especially when combined with the dislocation and difficulties evident in global financial markets.
The structure of Latvian GDP is in line with that of the developed countries: the shares of agriculture and manufacturing in total value added declined from 10% in 1995 to 4% in 2001 and from 22% to 13%, respectively, while the share of services increased from 56% to 63%.