CARACAS, Venezuela (AP) — Venezuela's economy grew 5.6 percent during the first three months of the year, continuing expansion that began at the end of 2010, the country's planning minister said Thursday.
Jorge Giordani said economic expansion from January through March was largely driven by 29.6 percent growth in the construction industry as the government funneled billions of dollars into a nationwide initiative to build hundreds of thousands of apartments for the poor.
The telecommunications industry grew by 7 percent. Giordani suggested the economy could grow by as much as 7 percent this year, beating the government's initial expectations of 5 percent growth for 2012.
"Venezuela's economy has entered a new phrase of expansion," Giordani said.
"Venezuela's economy has had sustained growth, which could easily make a boost of one to two (percentage) points possible."
High public spending should help spur the growth of Venezuela's privately owned industries, he added.
Giordani said he also expects the government to meet its objective of significantly reducing inflation, by keeping the annual increase of consumer prices between 20 to 22 percent.
"This year we are going to reach the goal," Giordani said. Venezuela has had the highest official inflation rate in Latin America for the past six years, despite price controls that have been in place since 2003.
yahoo.com
Jorge Giordani said economic expansion from January through March was largely driven by 29.6 percent growth in the construction industry as the government funneled billions of dollars into a nationwide initiative to build hundreds of thousands of apartments for the poor.
The telecommunications industry grew by 7 percent. Giordani suggested the economy could grow by as much as 7 percent this year, beating the government's initial expectations of 5 percent growth for 2012.
"Venezuela's economy has entered a new phrase of expansion," Giordani said.
"Venezuela's economy has had sustained growth, which could easily make a boost of one to two (percentage) points possible."
High public spending should help spur the growth of Venezuela's privately owned industries, he added.
Giordani said he also expects the government to meet its objective of significantly reducing inflation, by keeping the annual increase of consumer prices between 20 to 22 percent.
"This year we are going to reach the goal," Giordani said. Venezuela has had the highest official inflation rate in Latin America for the past six years, despite price controls that have been in place since 2003.
yahoo.com
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