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Global Macro-Market Outlook

Venezuela Outlook: A Dull Recovery

Global Economics Outlook, GDP and CPI data for Venezuela

  • Venezuela printed positive growth in Q4 2010 and is set to grow in 2011, although recovery will be weak and lackluster.
  • Higher oil prices should bring relief to government finances and allow the government to boost spending ahead of 2012 presidential elections. However, real activity will not benefit proportionally as oil production remains weak. 
  • Currency sales by the SITME continue at low levels, impairing economic activity and raising concerns about the sustainability of the exchange rate system.

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