Bank indicates worst of Venezuela's economic crisis over
The Central Bank of Venezuela (BCV)has forecast a partial recovery of the local economy,indicating the worst of the crisis in the country is over.
"We're better off.I don't believe a fall like that of January-March could take place again,"BCV President Domingo Maza said in an interview published on Tuesday in the El National daily.
Venezuela's GDP dropped 8.9percent last year and again plummeted 29percent in the first quarter of this year."Decrease in the productive activity was so deep in the first quarter of 2003that it is difficult to expect a worse situation for the remainder of the year,although this does not mean we haveto expect a positive balance in the gross domestic product (GDP)variation by the end of the year,"he said."Should an agreement be reached between the government and the opposition,a suitable environment could appear for the recovery of productive sectors,"he added.There has been speculation that the GDP could contract 10to 15percent by the end of this year,while some Venezuelan businessmeneven predicted a GDP drop of 25percent in the short-and mid-term.
Maza did not comment on the speculation.Chairman of the National Industry Council Lope Mendoza charged in a statement on Tuesday that the authorities had not adopted proper measures to curb the GDP contraction.