The Venezuelan economy will grow 7.2% in 2022, according to an academic study
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- 19 Oct 2022
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The gross domestic product (GDP) of Venezuela will increase 7.2% in 2022, while inflation will close the year at 125.4%, according to forecasts by the Institute of Economic and Social Research (IIES) of the Andrés Bello Catholic University ( UCAB), published this Tuesday.
"Real GDP is expected to end up increasing 7.2%, below the 8.6% estimated at the beginning of the first quarter," UCAB said in a press release.
The institute estimates that the "slowdown in the growth of the level of economic activity" will last until 2023, when it expects the rate to be 4.4%.
Increase of the Venezuelan economy
According to the study, although growth rates are "positive" they are also "insufficient to return economic activity to pre-crash levels" in 2016, although the country began to contract in 2014.
The IIES calculates that inflation will be 125.4% at the end of this year, "much lower" than 686.38% in 2021, and will continue its downward trend in 2023, although it will continue to be "the highest in the world."
“By 2023, in the most optimistic scenario, it is expected that it could reach 80%. Achieving this result would imply carrying out a strict fiscal discipline and achieving a high stabilization of the exchange rate, goals that are difficult to achieve in a pre-election year, "says the study. Read More…
