Economic activity in Venezuela increased 12.3% in the first semester

EFE / MIGUEL GUTIERREZ

In the first half of the year Venezuela recorded an annualized increase of 12.3% in its economic activity, reported the Venezuelan Finance Observatory.

This is mainly explained by the rise in oil production, higher government spending and the end of hyperinflation, he said.

“Is about modest growth if the large declines in the production of goods and services that occurred in 2019 and 2020 are taken into account,” the observatory said in a Press release.

Only in the second quarter, he explained, the increase was 16.6%. In this period, there was an increase in oil production of 36.3% by stabilizing the number of daily barrels in the order of 700,000.

On the other hand, he added, the credit portfolio, basically for consumption, had a modest rebound of 21%, considering the significant falls it showed. The government of Nicolás Maduro, likewise, appreciably expanded its outlays, mainly in current spending.

27 quarters down

“The Venezuelan economy maintained 27 consecutive quarters of a decline that began in the fourth quarter of 2014 and ended in the third quarter of 2021. This has meant that, as of the second quarter of 2022, the size of the Venezuelan economy has been only 21% of what it was in the second quarter of 2012,” he said.

Therefore, the observatory added, the loss of activity has been considerable. “Rarely has it been observed such an intense and prolonged fall in an economy in periods that were not mediated by an armed conflict”, he stated.

The Venezuelan Finance Observatory explained that, although they are annualized variations and that the base of comparison is very low by virtue of previous contractions in activity, any percentage change with a positive sign tends to be magnified.

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The article is in Spanish

Venezuela

Tags: Economic activity Venezuela increased semester

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