CARACAS--Venezuela's economy grew 5.5% in 2012, spurred by a sweeping government initiative to address a housing shortfall of 2.7 million homes in the South American country, according to preliminary data released by the central bank Thursday.
The expansion of Venezuela's gross domestic product, the value of all finished goods and services produced within an economy, is an improvement over the 4.2% growth reported last year and exceeds the 5% growth forecast in the government's 2012 budget.
Officials expect growth to speed up next year, with the economy expanding 6%.
"We are among the five countries with the most economic growth in Latin America," central bank President Nelson Merentes said at a press conference.
Heavy government spending ahead of President Hugo Chavez's successful October reelection bid, especially in programs to build houses for the poor, helped propel the economy.
The construction sector alone grew 16.8% in 2012, bolstered by the so-called Grand Housing Mission, the social program launched in 2011 by President Hugo Chavez.
This year the program has added 200,080 housing units, according to official statistics. The 58-year-old Mr. Chavez, who is in Cuba receiving treatment for a recurrence of cancer, sent public spending soaring during the election year.
On Wednesday, the government announced that Mr. Chavez had delegated some administrative duties over budgetary matters and expropriations to his vice president.
Mr. Chavez underwent his fourth surgery in 18 months on Dec. 11 to treat an undisclosed type of cancer that he has battled since June of last year. Mr.
Chavez, who normally dominates Venezuela's airwaves with frequent appearances, has not been seen in public since departing for Havana. Economists widely expect the leftist government to rein in the lavish spending on social programs next year.
Opponents of the leftist president accuse the government of undercutting domestic production by increasingly centralized control of the economy and restrictive foreign currency exchange policies that have driven Venezuela's heavy reliance on imports and kept inflation soaring.
Dollars have grown scarce in Venezuela amid the election-year spending, pressuring the country's "Strong Bolivar" currency, which has weakened against the dollar in the black market to record levels.
The government maintains dual pegged exchange rates of VEF4.30 and VEF5.30 per dollar, while a greenback fetches over VEF16 in the unregulated market.
Analysts were closely monitoring the officials' comments Thursday for any indication of whether the government plans to devalue the local currency or take other measures to narrow a widening fiscal deficit.
But Mr. Merentes offered few clues on any future moves by the government and warned against anticipating measures on the currency front.
"Economic measures aren't announced beforehand," Mr. Merentes added. The hydrocarbons-rich South American country saw oil-sector activity grow 1.4% on the year, compared with 0.6% in 2011.
Venezuela has enjoyed an average price of $103.54 per barrel of oil so far this year, according to the latest data, and is en route to finish the year at the highest level on record. The non-oil sector, meanwhile, grew 5.7% in the year.
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The expansion of Venezuela's gross domestic product, the value of all finished goods and services produced within an economy, is an improvement over the 4.2% growth reported last year and exceeds the 5% growth forecast in the government's 2012 budget.
Officials expect growth to speed up next year, with the economy expanding 6%.
"We are among the five countries with the most economic growth in Latin America," central bank President Nelson Merentes said at a press conference.
Heavy government spending ahead of President Hugo Chavez's successful October reelection bid, especially in programs to build houses for the poor, helped propel the economy.
The construction sector alone grew 16.8% in 2012, bolstered by the so-called Grand Housing Mission, the social program launched in 2011 by President Hugo Chavez.
This year the program has added 200,080 housing units, according to official statistics. The 58-year-old Mr. Chavez, who is in Cuba receiving treatment for a recurrence of cancer, sent public spending soaring during the election year.
On Wednesday, the government announced that Mr. Chavez had delegated some administrative duties over budgetary matters and expropriations to his vice president.
Mr. Chavez underwent his fourth surgery in 18 months on Dec. 11 to treat an undisclosed type of cancer that he has battled since June of last year. Mr.
Chavez, who normally dominates Venezuela's airwaves with frequent appearances, has not been seen in public since departing for Havana. Economists widely expect the leftist government to rein in the lavish spending on social programs next year.
Opponents of the leftist president accuse the government of undercutting domestic production by increasingly centralized control of the economy and restrictive foreign currency exchange policies that have driven Venezuela's heavy reliance on imports and kept inflation soaring.
Dollars have grown scarce in Venezuela amid the election-year spending, pressuring the country's "Strong Bolivar" currency, which has weakened against the dollar in the black market to record levels.
The government maintains dual pegged exchange rates of VEF4.30 and VEF5.30 per dollar, while a greenback fetches over VEF16 in the unregulated market.
Analysts were closely monitoring the officials' comments Thursday for any indication of whether the government plans to devalue the local currency or take other measures to narrow a widening fiscal deficit.
But Mr. Merentes offered few clues on any future moves by the government and warned against anticipating measures on the currency front.
"Economic measures aren't announced beforehand," Mr. Merentes added. The hydrocarbons-rich South American country saw oil-sector activity grow 1.4% on the year, compared with 0.6% in 2011.
Venezuela has enjoyed an average price of $103.54 per barrel of oil so far this year, according to the latest data, and is en route to finish the year at the highest level on record. The non-oil sector, meanwhile, grew 5.7% in the year.
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