GDP for energy rises, but power failures persist

Figures published by the Central Bank of Venezuela (BCV) show that the Gross Domestic Product (GDP) from energy and water grew 2.4% over the second quarter compared with the same quarter last year. These results denote growth for six consecutive quarters.

With regard to the six-month performance, the Central Bank reported a 3% increase for the first half of 2012 compare with 2011. In addition, data for both six-month terms and quarters is the highest since 2009, the year on which the energy crisis began, and the government had to devote greater investment to that sector.

Nevertheless, the rural areas of the country began to suffer from energy cutbacks resulting from power shortages.

The GDP for power and water is mainly influenced by the electricity sector and its investments and ongoing projects. In fact, over the past year and a half, investment is higher, yet the National Electrical System still faces the same issues.

Electrical engineer and professor at Simon Bolivar University, José Manuel Aller, blamed "lack of suitable management" as the underlying cause preventing the energy GDP from translating into a substantial improvement in the service output.

enmarcano@eluniversal.com

Translated by Félix Rojas Alva