Venezuela government says economy up 5.4 percent
CARACAS, Venezuela (AP) - Venezuela's economy grew in the second quarter to a level 5.4 percent ahead of the same period last year, the government said Friday.
A report released by Venezuela's Central Bank said increases in both the public and private sectors contributed to the gain, continuing economic growth for a seventh straight quarter following a nearly two-year recession.
Increased public spending coupled with high prices for oil exports also helped the growth in Venezuela's gross domestic product, the report said.
It said the construction sector expanded 17.6 percent in the April-June quarter, driven by the government's efforts to build millions of apartments for mostly homeless and poor Venezuelans.
The banking sector benefited from increased monetary liquidity, growing 34.4 percent, and commerce increased 9.8 percent, the report said.
Industrial production, which has traditionally helped boost economic activity, dropped 9.4 percent during the second quarter. The mining sector also showed a decrease, falling 4.5 percent in part because of problems at state-run mining companies, the report said.
President Hugo Chavez urged businessmen, many of whom have been strongly critical of his socialist-orientated policies, to cooperate with the government to ensure the upward trend continues.
"We have to work hard to continue elevating the national economy," Chavez said during a nationally televised address.
But Chavez stressed that privately owned businesses are welcome to team up with the government only "when they respect the law and work with honesty." He has ordered the expropriation of dozens of businesses, often accusing them of illegal practices or failing to comply with government-imposed price controls.
Venezuela's economy expanded 4.2 percent during 2011. Officials have expressed optimism the economy will grow 5 percent this year.
A report released by Venezuela's Central Bank said increases in both the public and private sectors contributed to the gain, continuing economic growth for a seventh straight quarter following a nearly two-year recession.
Increased public spending coupled with high prices for oil exports also helped the growth in Venezuela's gross domestic product, the report said.
It said the construction sector expanded 17.6 percent in the April-June quarter, driven by the government's efforts to build millions of apartments for mostly homeless and poor Venezuelans.
The banking sector benefited from increased monetary liquidity, growing 34.4 percent, and commerce increased 9.8 percent, the report said.
Industrial production, which has traditionally helped boost economic activity, dropped 9.4 percent during the second quarter. The mining sector also showed a decrease, falling 4.5 percent in part because of problems at state-run mining companies, the report said.
President Hugo Chavez urged businessmen, many of whom have been strongly critical of his socialist-orientated policies, to cooperate with the government to ensure the upward trend continues.
"We have to work hard to continue elevating the national economy," Chavez said during a nationally televised address.
But Chavez stressed that privately owned businesses are welcome to team up with the government only "when they respect the law and work with honesty." He has ordered the expropriation of dozens of businesses, often accusing them of illegal practices or failing to comply with government-imposed price controls.
Venezuela's economy expanded 4.2 percent during 2011. Officials have expressed optimism the economy will grow 5 percent this year.
Yeah, and North Korea's economy is growing the 20%. Is that why there are shortages of basic goods in Venezuela?Â
@GeorgeG. No, thats incorrect, I looked and no country grew at 20%. No, the reason for food shortages in Venezuela is price controls. The business sector (And political enemies) knows the amount of money entering the economy from oil and wants a piece of that action and artificially inflates prices to gouge the working class and to put political pressure on Hugo so, Hugo put price controls on commodities and the result was a decrease in production in an attempt to make Hugo look bad so the capitalists can have a better chance of winning an election and resuming control of the oil profits from that country. Silly ol' Hugo thinks the natural resources of a country belong to the citizens of that country and not some foreign oil company. Its the same story as any other country that lacks a US "puppet" so US business and shareholders can exploit the people and the resources of the host country.
"Venezuela government says economy up 5.4 percent" Nice work! Our growth rate is number 156th out of 185 world economies. The Socialist and Communist economies seem to be handing us our asses for some reason.
 @T_BONE_WALKER It's easy to make up stats when everything is centralized. Freedom of expression are non-existent in socialist and communist countries. Just ask North Korea. They tell their people that they are living the glorious utopia, and if anyone says different, the government makes them disappear.Â
@GeorgeG. What were your thoughts on the US being ranked 156th out of 185?
@GeorgeG. No freedom of expression in Norway, Sweden, Finland, Canada? huh? you sure about that? Did North Korea take a cue from the US and make it legal for the leader to order an assasination on one of their own citizens without a trial?