Maduro: Overall economic growth rate will be 8% in 2024

13, Feb - NEWS

Nicolas Maduro, the president of Venezuela, said that the growth rate of the economy in the new year will reach 8%, which is 3% more than in the previous year. This rather pathos statement is interestingly juxtaposed with the huge problems in the country.

In particular, millions of Venezuelans are leaving their country. They are attracted by the economic stability and decent salaries that developed countries can offer.

In addition, Venezuela has a huge inflation rate. Only last year this indicator amounted to about 200%. Nevertheless, this is far from the highest rate in the world. Venezuela was able to beat Argentina - in this country inflation is even higher.

Despite this, last year Venezuela's inflation rate fell by about 40% - and the president seems to take this as a sign.

Nicolas Maduro plans to further increase production in the country. He believes this is what will help raise the GDP figure to 8%. But even in the best case scenario, the situation remains dire compared to 2022, when the figure was 15%.

Among other things, Maduro also claims that inflation in the new year will no longer be triple-digit, but double-digit. It is worth recalling that last year the situation was helped by an oil company. PDVSA brought in a little over 6 billion dollars to the country's budget. The country allocated these funds for workers' salaries, as well as investments in health care and education.

Moreover, after the reduction of US sanctions, Maduro expects the profitability of this company to increase by almost 30%, despite the production problems in the past years.

This reduction in sanctions will continue until mid-spring. It is the one that has contributed to the increase in the price of Venezuelan oil. Biden's decision to ease sanctions came after Maduro released 10 Americans who were linked to the political opposition in the country.

Despite the possible increase in revenues, analysts believe that more money will go to so-called "social spending." This is due to the upcoming presidential elections in the country. Almost 60% of PDVSA's oil revenues and taxes will be spent on this. In total, the expenditures will amount to about 20 billion dollars.