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Despite recent government pronouncements that the economy has turned a corner, apparently it has not.
Venezuela's central bank reported that the GDP shrank 0.4% in the third quarter vs 2009. A smaller decrease than previous quarters but with surging oil prices, still somewhat inexplicable.
Its GDP declined 5.2% in Q1 and also fell in Q2 by 1.9%.
Domestic oil production actually fell 2.1% in Q3.
President Hugo Chavez has chided critics for implying that the GDP decline was even greater and accusing the central bank of manipulating the data.
1ST UPDATE, 19 NOV.: Barclay's speculates that Venezuela will formally devalue its currency by “at least” 15% in early 2011. At official rates, the usd would go for between 3 and 5 Bolivar per dollar, instead of the current rates of 2.6 and 4.3.
FOR DETAILS, SEE:
http://en.mercopress.com/2010/11/19/venezuelan-economy-recovering-but-15-devaluation-expected-in-2011
