Latvian retail sales dropped a staggering 5.1% m/m in June

Review Latvian retail sales dropped a staggering 5.1% m/m in June (seasonally adjusted and in constant prices). That equates to a drop of 29.1% y/y in June – significantly worse than our expectation of -23.9% and a clear deterioration relative to -26.0% y/y in May. The very weak number is unfortunately a confirmation that there is no stabilisation in domestic demand in Latvia yet. Further, given these very weak figures, we consider it likely that Latvian GDP has dropped at least as much as in