In the third quarter, GDP grew 4.2% over the same quarter last year, based on preliminary estimates released by the Central Bank of Venezuela (Banco Central de Venezuela) on 17 November. The print represented a significant acceleration over the 2.5% increase seen in the second quarter and overshot last month's Consensus Forecast that had the economy growing 2.9%. With the Q3 outturn, the Venezuelan economy has completed a full year of positive economic growth, after an 18-month recession. Domestic demand was the main growth engine, jumping 8.9% year-on-year in the third quarter (Q2: +4.2% yoy). Total consumption improved in the third quarter, with private consumption rising 4.2% (Q2: +2.7% yoy) and government spending growing 4.7% (Q2: +4.7% yoy). Furthermore, fixed investment rebounded, albeit increasing only a paltry 0.4% over the same quarter last year (Q2: -2.2% yoy). On the external front, import growth continued to outpace that of exports, thus prompting a deterioration in the external sector's net contribution to overall growth from minus 2.8 percentage points in the second quarter to minus 7.1 percentage points in the third. Exports of goods and services rose 6.7% in the third quarter (Q2: +7.8% yoy), while imports soared 19.7% (Q2: +9.8% yoy). At the sector level, the improvement was mainly due to faster growth in the non-oil sector (Q2: +2.7% yoy; Q3: +4.4% yoy), particularly in the financial institutions and insurance category, as well as in the construction sector, which is currently boosted by the so-called Great Housing Mission launched in April this year. On the other hand, the oil sector remained subdued and added only 0.3% over the same period last year (Q2: +0.8% yoy). Analysts expect that economic growth will pick up in the coming quarters, propelled by high oil revenue and massive fiscal spending ahead of the 7 October 2012 presidential election.
Economy picks up in third quarter
November 17, 2011
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Venezuela Economic News
October 11, 2016
In late September, the Venezuelan government modified the long-awaited bond swap offer it had first presented on 16 September, which had been in the offing for months.
October 10, 2016
Car sales recorded a sharp 56.4% contraction over the same month last year and totaled 271 units in September, according to figures from the Venezuelan Automotive Chamber (CAVENEZ, Cámara Automotriz de Venezuela).
October 7, 2016
The bolivar has appreciated somewhat since early March when it crossed the 1,200 VEF per USD threshold and hit an all-time low.
October 7, 2016
Given the dearth of official data for inflation, different indicators from official and non-official sources are used as proxies to measure the evolution of price levels in the South American country.
October 7, 2016
In response to the massive protests held by the opposition in early September, the government has adopted a more defiant tone and is blocking any attempt by the opposition to contest the ruling party’s hold on power.