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  • IMF Managing Director Christine Lagarde attends a news conference during IMF - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia

    IMF Managing Director Christine Lagarde attends a news conference during IMF - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia | Photo: Reuters file

Published 19 October 2018

Recession in Venezuela projected to slow next year

On Wednesday, the International Monetary Fund (IMF) predicted a 2.2 percent growth in Latin America for 2019, adjusting down the institution's May 2018 forecast of 2.8 percent growth. 

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According to the IMF, "the moderating recovery is underpinned by divergent growth outcomes across the region." In the specific case of Venezuela, the IMF predictions indicate significant improvement and positive turnaround in the country's economy for 2019. 

According to Torino Capital — a New York-based investment bank — Venezuela's economy is poised to grow 2.1 percent in 2019, nearly mirroring the overall 2.2 percent regional growth mark.

The recovery is based on projected growth of 10.6 percent in the fourth quarter of 2018.

The same firm states that among the main reasons for 2018's slow performance are decreased oil-production and United States-led financial sanctions, among other factors. 

In context, during the last few years, U.S. sanctions have hurt the Venezuelan oil industry, which has prompted the government to seek out new oil contracts for the exploitation of 14 wells, with the help of technology investments needed to step up production. 

The Venezuelan government recently launched a new Petro cryptocurrency — backed by the nation's oil reserves — in global markets, to replace the U.S. dollar in "real state deals as well as paying for goods such as airline tickets, hotels and the like," according to Venezuela's President Nicolas Maduro. 


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