Oil basket at USD 50 and inflation at 15% in Venezuela's 2013 budget

The Venezuelan Government is already drawing up its 2013 socialist budget.

The Venezuelan Ministry of Planning and Finances and the Ministry of Petroleum and Mining are working along with the Central Bank of Venezuela (BCV) on fluctuating macroeconomic estimates (oil price, inflation, economic growth, and foreign exchange rate) so as to decide on the indicators ruling over public expending.

Official sources have revealed that the Venezuelan authorities have considered different scenarios. Latest scenario unfolds 12-15% inflation. Lower inflation has also been taken into account, but it will be subject to further revisions.

Moreover, although Venezuelan state-run oil company Pdvsa has not unveiled output estimates, the Venezuelan oil basket was calculated at USD 50. The official sources have noted that upon the revision of the different scenarios, the authorities have agreed on keeping a reasonable price baseline.

Meanwhile, economic activity has been estimated at 5-6% of the GDP upon positive results in the first half of the year.

Regarding foreign exchange, no details have been provided yet.

Translated by Jhean Cabrera