Venezuela: Car sales decline for the fourth consecutive year
January 17, 2012
In December, car sales totalled 11,910 units, according to figures from the Venezuelan Automotive Chamber (CAVANEZ). The reading came in above both the 9,064 units reported in November and the 10,155 units sold in December 2010. Despite December's improvement, car sales amounted to 120,716 units in the full year 2011, which is down 3.6% from the 2010 result and well below the peak of 491,889 units reached in 2007. In fact, car sales have been falling continuously since 2007 due to severe supply shortages, as the government imposed restrictions on assembly plants and importers. Given the limited availability of timely data on the real sector, analysts use car sales as a proxy for private consumption. According to the 2012 budget plan, the government forecasts that GDP will grow 5.0% in 2012.