Authors:
José Alberto López Rafaschieri and Luis Alberto López Rafaschieri
www.morochos.net
According to our calculations, Venezuela's GDP should have dropped by 5,4% in the second quarter of 2010 over the same period last year.
This would mean the fifth consecutive quarter of economic contraction, while most other Latin American countries recovered growth since months ago.
Unemployment showed a slight decline during this period, but this was not enough to counter the electricity crisis and the fall in private investment. In addition, in this quarter the inflation rate had the largest increase so far this year and two extraordinary factors were added to the Chavez's recessive cocktail: There was an intense monetary trauma due to the insertion of the dollar-SITME in the exchange rate system, and the prosecution of almost all stock broker firms and “Banco Federal”, which caused a financial nervousness that did not do any good to the economy.
Related articles:
- Venezuela 2010: Estimate of GDP and inflation
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