Venezuela's 5.2% economic growth attributed to heavy public expenditure
Government expenses boosted trade, services, and construction sectors
The information was disclosed by the Central Bank of Venezuela (BCV), which outlined that higher government expenditure (7%) and higher private consumption (7.8%) led to growth in public construction, trade, and services. However, in key manufacturing areas, further setbacks were reported and the fall in production was offset by imports.
During the presentation of Venezuela's economic results in the third quarter of the year, Planning and Finance Minister Jorge Giordani asserted, "We have entered a new steady and sustained expansion period, and we have been able to exceed the five percent goal set for this year." After showing some figures, the minister praised only the administration of some sectors heavily dependent on public funds.
During the presentation, the BCV admitted that favorable results were due to "greater supply of goods and private and public funding for construction."
Indeed, the construction sector grew 12.6% in the third quarter, with the public construction sector climbing 18.8% due to the construction of new homes.
Regarding manufacturing, the BCV remarked that the sector grew 3% due to a higher production of paper, wood, furniture, textiles, and rubber. Nonetheless, poor results were reported in key areas. Production of food, automobiles, machinery, and electric devices turned out to be negative.
Translated by Jhean Cabrera
Cristian Fonseca, a businessman in La Candelaria district downtown Caracas, was doing the accounts in his small shop office on Sunday December 21, 2008. The Christmas shopping season kept him working late hours into the night. It was around 11 p.m. and his phone rang. A friend broke the bad news to him over the telephone.