Experts think that no growth is possible without steady investment

The Venezuelan Executive Office opted to retake last year the expansive policy of public expenditure to boost growth. According to a group of economists, this is the only economic stimulus since private investment remains low.

Ricardo Hausmann, a Harvard University professor and former Venezuela minister of Planning, commented that the current economic situation is based on "public spending in an environment of low private investment. In Venezuela, it is better to import than investing."

In the forum Outlook 2012, organized by Caracas-based Institute of Higher Education in Business Administration (IESA), Hausmann asserted that "Venezuela's development does not rely on what happens in the world, it is an internal issue. (The economy) operates with limited capacity."

Meanwhile, IESA economist and a professor, José Manuel Puente agreed with Hausmann. "You can not create stable growth without domestic and foreign private investment."

"Venezuela is growing below its potential ... oil revenues have amounted to USD 608 billion in the past 12 years. Therefore, there were funds available to transform the production apparatus."

Translated by Gerardo Cárdenas