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Imported goods are cheaper, BCV acknowledges

After seven months the expected time, the Venezuelan Central Bank (BCV) issued its economic report for 2005.

In addition to macro-economic numbers, such as a growth of 9.3 percent of the Gross Domestic Product (GDP) and inflation of 14.4 percent, BCV hinted distortions in the economic performance last year.

One such distortion is that imported goods are cheaper than the commodities made in Venezuela.

"Performance of the wholesale price index is mainly related to the relative lower prices of imported goods as compared to domestic items. On the one hand, the imported component of the wholesale price index showed an annual growth rate of 11 percent. On the other hand, increase of prices in the national component stood at 15.3 percent," BCV elaborated.

The BCV report explained that the prices of marketable products increased by 15.2 percent. Non-marketable products grew at a slower pace, by 13.4 percent.

"In 2005, reduction of the variation rate in the prices of marketable goods was closely linked with imports performance and exchange stability," BCV clarified.

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