Banco Provincial forecasts Q1 GDP drop of 42.4%

www.vheadline.com Posted: Tuesday, March 11, 2003 By: Robert Rudnicki

Banco Provincial, a subsidiary of Spain's Banco Bilbao Viacaya Argentaria, is estimating that Venezuela's first quarter GDP contraction will be in the region of 42.4%, largely as a result of the two month opposition work stoppage which crippled the all important oil sector.

The sector is estimated to have contracted by 69.3% over the same period, and all other sectors are forecast to shrink by 32.5%.

Banco Provincial's estimate is similar to one made by Banco Santander, which put their forecast at 40% for the quarter. Last year the economy contracted by 9%, compares with positive growth in the two previous years.