Venezuela Economic Outlook
December 9, 2014The Venezuelan economy remains in the doldrums. The free fall of the bolivar accelerated in November due to strong purchases of U.S. dollars by Venezuelans in an attempt to shield themselves against skyrocketing inflation. Although President Nicolás Maduro announced that the government will revise the exchange rate mechanism, analysts are skeptical about the scope of the initiative and how successful it will actually be. Moreover, the sharp decline in oil prices observed in recent weeks is expected to put additional pressure on the country’s battered finances. According to some analysts, the country loses USD 700 million a year for every USD 1 decline in oil prices. In November, the government transferred about USD 4.0 billion to the Central Bank’s coffers in order to shore up the country’s shrinking reserves, which hit an 11-year low in October.
Venezuela Economic Data
5 years of Venezuela economic forecasts for more than 30 economic indicators.
|Bond Yield||8.8||0.0 %||Oct 23|
|Exchange Rate||6.30||0.0 %||Dec 04|
|Stock Market||2,973||0.60 %||Dec 04|
Venezuela Economic Growth
December 9, 2014The economic climate is deteriorating sharply because of skyrocketing inflation, heterodox and interventionist policies, and falling oil prices. Against this backdrop, LatinFocus Consensus Forecast panelists shaved off 1.2 percentage points from last month’s projection and they now expect a 2.0% drop for 2015. For this year, the panel sees GDP falling 3.3%.
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Venezuela Economic News
December 5, 2014
Annual car sales fell 52.8% over the same month last year and reached 2,793 units in November, according to figures from the Venezuelan Automotive Chamber (CAVENEZ, Camara Automotriz de Venezuela).
December 2, 2014
The bolivar traded in the parallel market continued to tumble in recent weeks due to the ongoing shortage of U.S. dollars and strong purchases of the greenback by Venezuelans in an attempt to protect themselves from soaring inflation.
December 1, 2014
In November, the average price of Venezuela’s mix of crude oil fell a sharp 11.1% over the previous month to USD 70.2 per barrel, which represented the lowest price since September 2010.
November 10, 2014
The freefall of the bolivar that is traded in the parallel market continued in recent weeks due to a severe shortage of U.S. dollars and strong purchases of the greenback by Venezuelans in an attempt to protect themselves from skyrocketing inflation.
November 1, 2014
In October, the average price of Venezuela’s mix of crude oil fell an astonishing 11.6% over the previous month to USD 78.9 per barrel, which represented the lowest price since November 2010.