During three years of double-digit growth Latvians competed to buy the latest luxury cars. Today the giant car showrooms that line the road between Riga’s airport and the old Hanseatic port stand forlorn.

“This is worse than the [1998-99] Russian crisis,” says Valdis Spredzis, manager of Skandi Auto, which operates four showrooms selling Mitsubishi, Hyundai and Bentley models.