The Bank of America (BofA) estimates that Venezuela’s Gross Domestic Product will grow 15%, with a variation in annual inflation of 93% at the end of 2022. The mid-term perspective foresees a lower GDP increase of 5% for 2023, and a 1 point rise in inflation, leaving it at 94%.
BofA also forecasts a positive payments balance for the next two years, with surpluses of 2.9% and 3.2% of GDP in 2022 and 2023 respectively.
According to the Banca y Negocios websites, such data reflect the expectation of a sustained increase in oil revenues together with greater dynamism in Venezuela’s domestic production.
BofA analysts consider that, in the case of Venezuela, “inflation has fallen by a monthly average of 5.7% in January and March, which is related to a slowdown in the growth of the monetary base.” This has come about by an improvement in fiscal revenue and the currency exchange operations of Central Bank of Venezuela.
Analysts agree that Venezuela’s economic recovery is due to the application of some policies by the government of Nicolás Maduro, which has placed Venezuela, along with Argentina, Brazil and Colombia, in a group of countries that have shown this year’s best performance in terms of economic growth.
Featured image: Bank of America has joined a group of financial institutions that have forecast positive economic projections for Venezuela. Photo: Mike Blake / Reuters.
Translation: Orinoco Tribune
Misión Verdad is a Venezuelan investigative journalism website with a socialist perspective in defense of the Bolivarian Revolution
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