Venezuela Economic Outlook
February 18, 2020The economy continued to languish in the final quarter of last year, although seemed to contract at a less severe rate. Oil production appeared to bottom out in Q4 after having fallen by more than 40% since the start of 2019 as U.S. sanctions and power outages choked the vital industry. In an attempt to revive the sector, the government indicated that it intends to offer majority shares and control of its oil industry to foreign corporations. In late January, officials held talks with Repsol, Eni and Rosneft to shape a deal which would grant government-owned oil property and restructure some of PDVSA’s debt in exchange for assets. Meanwhile, the increasing dollarization of the economy has reportedly somewhat stabilized prices, incentivized private sector activity and slowed emigration, with authorities introducing a VAT on U.S. dollar transactions to tap into new sources of government revenue.
Venezuela Economic GrowthThe economy is likely to shrink for the seventh year running in 2020, although the rate of contraction should ease as softer government regulation supports household spending. Moreover, the privatization of oil assets should shore up fixed investment, while oil production looks set to stabilize at current levels. Additional U.S. sanctions pose downside risks to the outlook. As it stands, the LatinFocus Consensus projects the economy to contract 10.9% in 2020, which is down 0.5 percentage points from last month’s forecast. In 2021, the panel sees GDP shrinking 1.8%.
Venezuela Economy Data
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|Bond Yield||5.50||0.0 %||Aug 19|
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Venezuela Economic News
February 4, 2020
National consumer prices rose 31.5% from the previous month in December, up from November’s 25.7% month-on-month increase, according to data released by the Central Bank of Venezuela (BCV) on 4 February.
Venezuela: Inflation eases to seventh-month low in September amid Central Bank’s contractionary policies
October 19, 2019
National consumer prices surged 52.2% from the previous month in September, up from August’s 34.6% month-on-month jump according to the trove of data released by the Central Bank of Venezuela (BCV) on 19 October.
October 19, 2019
On 19 October, the Central Bank of Venezuela (BCV) released fresh macroeconomic data for the first time in six months, underscoring the severity of the crisis currently gripping the country.
June 10, 2019
bet360备用网址National consumer prices jumped 33.8% from the previous month in April, following March’s 34.8% month-on-month surge, according to the trove of data released by the Central Bank of Venezuela (BCV) on 28 May.
May 28, 2019
On 28 May, the Central Bank of Venezuela (BCV) released macroeconomic data for the first time in nearly four years, highlighting the extent of the profound economic crisis currently gripping the country.