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President of Venezuela estimates that the economy grew 15% in 2022

President of Venezuela estimates that the economy grew 15% in 2022

The President of Venezuela, Nicolas Madurosaid Thursday that the South American country’s economy grew by about 15% in 2022, attributing the expansion to economic diversification and oil activity.

In December, the Central Bank of Venezuela said that the Gross Domestic Product (GDP) it rebounded 17.73% in the first three quarters of 2022, after more than three years without disclosing data on the performance of the sectors.

economic activity Venezuela It was plunged into an eight-year crisis caused by a state model of controls that led to the migration of more than 7 million Venezuelans.

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“I deeply trust the business force, the entrepreneurial force, the productive force of Venezuela (…) Venezuela has had a growth in the year 2022 above 15% of Gross Domestic Product, the highest economic growth in Latin America”, Maduro said in his annual message to the National Assembly, without giving figures for previous years.

Three years ago Maduro relaxed, in the midst of US sanctions, regulations on the private sector allowing greater transactions in foreign currency, which has given oxygen to various sectors, but even this strategy has not guaranteed a full recovery of the economy, according to analysts.

“We have learned to do a lot with very little. We have learned to do much more with less in the course of these years (…) But the impact of the sanctions continues to be brutal”, Maduro said. “Enough Sanctions, Joe Biden Administration, Lift All Criminal Sanctions!”he added.

In 2019, Washington intensified the oil and financial sanctions against Venezuela as a way to pressure Maduro to leave power, who has continued in office with the support of the military and allied countries. These measures have had an impact on the trading of crude oil from the OPEC member nation.

Maduro added that he hopes the United States will release billions of dollars frozen in Venezuela’s offshore accounts so they can be used to finance humanitarian efforts agreed to with the country’s opposition in November.

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The president said that his government is “acting” to correctr “exchange rate shocks” and added that “with the decisions that are being made” aspires to stabilize the “exchange rate and twist the definitive arm of inflation as we did in 2021 and 2022″.

Venezuela still faces high prices. The Central Bank has not released data since October and for that month annual inflation was 155%. Non-governmental groups calculated that inflation would have closed the year at 300%.

Since the end of 2021, the government applied an orthodox policy to slow down inflation by anchoring the exchange rate, limiting credit and public spending, and increasing taxes.

But since the last quarter of 2022, that policy has shown cracks with the accelerated depreciation of the local currency, the bolivar. At the same time, the government has delayed payments to suppliers amid the lower flow of dollars.

Source: Reuters

Source: Gestion

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