Tuesday, June 13, 2006

The boom accelerates? 

As we know the Venezuelan economy has been booming for serveral years now. This was most recently confirmed by the over 9% growth in GDP in the first quarter of 2006. This was well in excess of the 5 to 6% growth projected by many outside observers and the government itself.

But there is evidence that already high rate of growth could accelarate during the rest of the year. For example, today's El Universal gave some statistics indicating that consumption it growing at what are incredible rates.

In the first quarter of 2006 wholesale sales are up by a stunning 51.78%. Retail sales are up an also amazing 29.82%!!

But it gets even better. Sales of equipment and machinary are up 130% while construction equipment and materials are up 45.62%!!!! And some would have us believe there is no investment in Venezuela. But of course, that 130% increase is just people buying machine tools to put in their living rooms as decorative items!

Over the last couple of years the economic numbers coming out of Venezuela have been so good its hard to get excited about them anymore. But these numbers are so spectacular they merit attention. Further, it will be interesting to see if they help bump the already very high economic growth rates even higher.


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