Venezuela’s Economy Grew By 10.2% in 3rd Quarter
Caracas, November 17, 2006—Venezuela’s economy grew by 10.2% in the 3rd quarter of this year, compared with the same period last year. The driving force behind the growth is the non-oil sector of the economy, the Venezuelan Central Bank said yesterday.
The oil sector overall growth in the oil sector actually fell. Public sector oil growth was at 0.9%, while the private oil sector fell by 11.2%. This was partly due to maintenance activities, but private companies blame the down time due to the renegotiation of their operating contracts early this year. The combined growth figure for the oil sector compared with last year was down 1.8%.
Contrary to the image of the Venezuelan government and its president, overall private sector growth eclipsed the public sector figure. The private sector grew by 12.3%, while the public sector grew by only 2.7%. Private sector investment in high value added activities of the manufacturing process was 11%, which accounts for a large chunk of the private sector growth. Government spending on the building trade was up 35% relative to last year’s figures.
In fact, the communication, retail, construction, and manufacturing industries all posted double-digit growth figures. The bank said this was due to the continuing high levels of liquidity in the economy.
These figures suggest the bank may have underestimated the annual growth figure of 9% for this year.