By Eyanir Chinea
CARACAS (Reuters) – The Venezuelan economy in 2015 recorded the worst performance of a country in the Americas, with a contraction of 5.7 percent and an inflation rate almost tripled, hit by the impact of the collapse of oil prices, according to official figures released Thursday.
the Central Bank of Venezuela (BCV) published the data hours after President Nicolas Maduro announced measures to alleviate the economic crisis, which included the rising prices of the cheapest gas in the world after almost 20 frozen years, and a devaluation of 37 percent.
the economy of the South American oil country prolonged the recession that started in early 2014 and ended last year with the highest inflation in the world, a 180.9 percent.
the worst part of the disaster brought it the private sector, with a decrease of 8 4 percent in 2015, due to lower availability of raw materials amid the shortage of foreign exchange, which atrophied manufacturing. The public sector expanded 1.1 percent.
The Gross Domestic Product (GDP) in the oil sector, key to local finances, fell by 0.9 percent and non-oil economy plummeted 5.6 percent, the Central Bank explained in a report.
“in this situation adds shortage of products, which is perceived by the public as one of the main problems facing the country, with speculation and hoarding, “he argued the issuer in reference to the acute shortage of food and medicine.
However, the institute did not publish the scarcity index ceased to disclose two years ago when he began up uncontrollably. Long lines have become commonplace outside markets and pharmacies across the country
The prices of food and beverages were the highest growth last year, up 315 percent.; followed by restaurants and hotels, which increased by 294.1 percent, They pointed data.
In addition, the prices of sensitive items such as clothing and footwear increased by 146.5 percent, while health care costs more than doubled.
The Government of Maduro argues imbalances are part of an “economic war” carried out by the opposition and unscrupulous businessmen. But opponents say the crisis is the corollary of more than a decade of controls that have hit the productive apparatus and increasing dependence on oil exports.
“EVENING AND LITTLE”
Among the measures announced on Wednesday night by Maduro it is also the progressive rise in prices of one hundred products, whose values remain frozen for years by state controls.
Analysts agreed that the measures proposed by Maduro would stay short to close the deficit gap left by the collapse of revenues which the government estimated at 70 per cent, but the president’s allies the endorsed .
“the United Socialist Party of Venezuela welcomes and actively supports adverts (…) who made our President with the aim of defeating the economic war and rescue stability,” he said in a ruling PSUV statement.
Among other data, the Central Bank also reported that the country’s current account showed a deficit of 18,150 million dollars in 2015, while the capital and financial account showed a profit of 16.507 million dollars .
exports fell 50 percent, in line with the fall in the price of the basket of Venezuelan crude. Imports declined by 22.3 percent.
“The ads were similar to expectations and perhaps more symbolic than substantive,” said Siobhan Morden, the Nomura investment bank. “They are insufficient to correct distortions or solve cash availability.”
Some Venezuelans agreed with economists.
“The measures Maduro will not solve the crisis in which we live (…) it’s too late. Nothing will change. Today, for example, the tail is longer than yesterday, “said Maria Hernandez, a stay at each of 45 who waited in a long line to enter a supermarket in eastern Caracas.
despite the savings will mean increased gasoline, analysts still doubt that Venezuela has the capacity to honor its international debt in the second half of the year, when the state PDVSA and the Republic must pay nearly 5,000 million.
Since Friday, the highest octane gasoline will cost 62 times more, but will still be one of the cheapest in the world.
The fuel increases in Venezuela are often related to social explosions. A tour of Reuters Thursday morning found that in major cities nationwide activities remained normal.
The Venezuelan sovereign debt also seemed to assimilate the results and following the rise in oil prices is moved in positive territory at the beginning of the day, with the score market, the Global 2027, trading 0.8 percent higher
(additional reporting by Diego Ore and Corina Pons. Edited by Silene Ramirez and Luis Azuaje )
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