CARACAS, Friday September 20, 2013 | Update

Econométrica estimates Venezuela's inflation next year at 44%

Official forex rate at the Foreign Exchange Administration Commission might be adjusted to VEB 10-12 against one US dollar

Friday September 20, 2013  03:33 PM
Within the framework of the Economic Perspective Forum 2014 recently held by Econométrica, its director, Economist García Banchs, stressed Venezuela's economic prospective in 2013-2014 is bleak.

In the view of García Banchs, Venezuela's gross domestic product was likely to suffer a downturn calculated at -1.7% if oil prices averages USD 105 per barrel.

Further, inflation might hit some 44% expressed in the National Consumer Price Index. Such a result would actually be below the forecast for 2013, estimated at 47%, the Econométrica's director hinted.

Other estimates point to a drop in private consumption and a rise in the forex rate at the Foreign Exchange Administration Commission. This may even happen as of 2013 upon the local election of December 8, when the forex rate may be adjusted to VEB 10-12 against one US dollar.
Venezuelan metallurgic industries stay alert

According to inner surveys performed by the Venezuelan Association of Metallurgical and Mining Industries (AIMM), where 160 metallurgic companies were taken into consideration, 90% of the companies members of this association are "distressed because of their existence or survival in the short term," stated Manuel Eseverri, president of this association.

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