National stoppage: negative impact on economy estimated at $7.3 billion!

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Sunday, March 30, 2003 By: Patrick J. O'Donoghue

The National Assembly (AN) Economic and Financial Consultancy Office puts losses caused by the December-February national stoppage at $7.3 billion said to be 7.6% of GDP.

Loss in the oil sector for production stoppage and short term crude and products sales is estimated at $2.8 billion aggravated by investment in gasoline imports covering 1% GDP making an all round impact of $3.7 billion or 3.8% of GDP 2002.

The Office estimates that in the non-oil sector, the negative economic impact was $3.6 billion or 3.8% of GDP 2002. The manufacturing sector was hardest hit followed by services and real estate.

• Taxes from oil and non-oil sectors dropped 1.6% GDP which converts to a fall equivalent to 9.3% of total 2002 contributions.

This year the Office forecasts $84 billion GDP which is 15% less than in 2002.