Thursday, April 8, 2010

Venezuela: Estimate of 2010-I GDP growth

Authors:
Luis Alberto López Rafaschieri and José Alberto López Rafaschieri
www.morochos.net

The first quarter of 2010 has ended, but for some strange reason the Central Bank of Venezuela takes nearly two months to calculate the percentage change of GDP in each period. Nonetheless, according to our estimates, the Venezuelan GDP should have fallen more than 6% during the first quarter of this year -specifically, we believe that the change was -6.2% over the same quarter last year-.

If these calculations are correct, this would mean that the Venezuelan economy would have recorded four consecutive quarters of contraction, which would not be at all unusual for a country that has the characteristics of Venezuela: national electricity crisis, currency maxi-devaluation in January, undermined private sector activity, delayed government payments and drastic legal reforms.


Related articles:

- Venezuela 2010: Estimate of GDP and inflation

- Electricity crisis deepens recession in Venezuela

- Maxi-devaluation in Venezuela, without a rise in prices?

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