Tuesday, May 11, 2004

Venezeulan economy grows at torrid pace 

The Director of the Venezuelan Central Bank, Domingo Zavalo said that the Venezuelan economy probably grew at least 12% in the first quarter of the year and may have grown at a rate of up to 20%. The spectacular growth is led by the energy sector which is expected to grow by up to 15%. But even the non-energy sector is expected to grow between 8 and 10%.

Zavalo also stated that “the manufacturing sector is recovering” and he further pointed out the private sector has also been growing.

This level of high growth comes after two years of negative growth that were largely the result of a coup attempt in April 2002 and a opposition lead strike from December 2002 through February 2003.

It was further pointed out by another director of the BCV, Armando Leon, that while inflation remains a problem in the Venezuelan economy it is being steaddily reduced. The inflation rate for 2003 was 27.1%. It is expted that by 2005 the inflation rate should be less than 20%.


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