Wednesday, December 28, 2005

No bad news in sight 

Official statistics won't be out until January or February but this is certainly good news:

Venezuela's economy expanded by 9.4 percent in 2005 compared to 17.4 percent growth last year, the central bank president said Wednesday.

The economy has expanded during nine consecutive quarters and would grow roughly 6 percent in 2006 as oil prices remain high, Gaston Parra, president of the Venezuelan Central Bank, said in an annual report.

Oil exports provide about a third of Venezuela's gross domestic product, roughly 80 percent of export earnings and about 40 percent of all government income. GDP measures the value of goods and services produced in a nation.

Oil-related GDP was expected to close the year up 1.2 percent while economic growth outside the all-important petroleum industry was expected to reach 10.3 percent in 2005, according to the central bank report.

The central bank expects inflation to remain below 15 percent this year.

This economic boom is just undeniable. What is interesting though is that they are very conservative in their projections for next year. I have seen articles by opposition economists where they expect economic growth to be around 10% next year too. I think the government just likes to be very conservative with all its projections so as to not dissapoint. And dissapoint they don't.


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