Venezuelan GDP to grow 0.5% by the end of 2009

Caracas, Nov 17. ABN.- According to the traditional measurement criteria for the Gross Domestic Product (GDP), Venezuela will grow about 0.5% by the end of 2009, as stated by the Minister of People's Power for Economy and Finances Ali Rodriguez Araque.

Although the Minister considers said growth as “modest,” Venezuela remains with a positive balance in its GDP compared to the Latin American region and even to Europe in the framework of the world economic crisis.

However, in reference to a report published this Tuesday by the Venezuelan Central Bank showing a fall in the economy for the third trimester of the year with -2.2%, Rodriguez Araque stated that “the tendency will continue, but we estimate that the deceleration could reach 2.2% maybe 1%, we wanted to reach 0% of growth, but it's not going to be possible.”

In regard to the expectations for the next year, the Minister said that the Government has to be prudent “and not make exact predictions; however, in our case, we have no doubt that the performance of the oil activity is going to improve.”

Taking into account the achievements reached in specific sectors, such as construction -growing 4.3% or telecommunications with 11.4%, “we can improve our growth goals, being cautious, because the world instability and recession are still latent,” the Minister of Finance insisted on.

Another factor favoring the growth perspective is that the fall in the manufacture of the automobile sector was stopped and other sectors that were falling have been evidencing some recovery, Rodriguez pointed out.

Also, he underscored that the Government will give priority to recover and give incentives to homes construction and food sector.