Crowd of buyers in the Sambil Mall in Caracas, Venezuela, on Black Friday 2022. Photo: Twitter/@CAVECOM/File photo.
On Friday, December 30, the Central Bank of Venezuela (BCV) reported that Venezuela’s Gross Domestic Product (GDP) grew 17.73% between January and September 2022.
BCV reported that the Venezuelan GDP recorded growths of 17.45%; 23.30% and 13.22% in the first, second and third quarters of 2022, respectively, with which the aggregated January-September GDP closed with a rebound of 17.73%, compared to the same period in 2021.
“With this result, there have been five consecutive quarters in which positive variations are evident in most economic activities, which reflect the favorable performance of the national productive apparatus, which began in the third quarter of 2021,” the BCV report stated.
The analysis highlighted that economic growth occurred after the rebound in the world economy in 2021 due to the easing of quarantines installed the year before to combat the COVID-19 pandemic. However, available records for 2022 show a generalized global economic slowdown.
The report added that, despite the appearance of other variants of the coronavirus, as well as the start of the conflict in Ukraine that have activated new alerts in the world economy due to the widespread interruptions in supply chains and shortages of containers, rising energy prices and rising inflation, the Venezuelan economy has grown in 2022.
Growth by sector
From the institutional point of view, the public sector experienced, in the January-September period, a growth of 20.03% in added value, as a result of increases of 23.33%, 27.53% and 10.55% in the first, second and third quarters respectively of the year. The private sector grew 15.55% during the January-September period, with a 12.08% increase in the first quarter, 18.87% in the second, and 15.77% in the third.
Economic activities
Oil activity:
The oil sector registered a growth of 27.09% in the January-September period, with 37.69% in the first quarter, 37.55% in the second, and 8.48% in the third. The significant increase in the gross value added (GVA) of oil activity that began in the third quarter of 2021 is mainly due to the recovery of crude oil production capacity, through direct PDVSA management and joint ventures.
Non-oil activities:
The growth of the non-oil activities was 14.49% in the January-September period, with growth of 10.75%, 17.93% and 14.84% in the first three quarters of 2022. The increase originated from the positive figures in majority of non-oil activities, including manufacturing (39.61%), transport and storage (54.35%), trade (25.28%), general government services (12.08%), electricity and water (3.23%) and communications (0.36%).
These growths result from the conjunction of the observed growths in each of the first three quarters of the year. In the first quarter, the growth were: transportation and storage (44.40%), manufacturing (32.71%), commerce (21.33%), general government services (10.81%), electricity and water (3.26%), and communications (0.28%). In the second, the growths were: construction (149.50%), manufacturing (52.17%), transportation and storage (83.40%), commerce (31.21%), general government services (11.09%), electricity and water (3.45%), communications (0.15%). In the third quarters, the growths were: transportation and storage (39.60%), manufacturing (33.90%), construction (27.12%), commerce (22.95%), general government services (14.05%), electricity and water (2.95%), communications (0.59%).
Manufacturing:
Manufacturing activity increased 39.61% in the January-September 2022 period. From an institutional perspective, the public sector grew by 36.27% and the private sector by 40.16%.
The added value of public manufacturing presented a growth of 36.27% during January-September 2022, despite the a decreased of 15.18% in the first quarter. That decrease was more than offset by the significant growth of 99.30% in the second quarter and 42.23% in the third. This result is mainly due to the reactivation of public companies, such as Venalum, Alcasa, Pequiven, and Lácteos Los Andes.
Commerce:
The added value of the commercial activity registered a growth of 25.28% during the January-September period of 2022, with an increase of 21.33% in the first quarter, 31.21% in the second and 22.95% in the third, mainly as a result of the increase in the supply of tradable goods of national origin.
Construction:
Construction activity showed a 35.45% GVA recovery in January-September, driven by the 149.50% growth during the second quarter. This significant recovery in activity was the result of the growths in both public (155.68%) and private (49.79%) sectors. The construction of non-residential works was fundamental for this growth.
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Electricity and Water:
The GVA of the electricity and water activity registered, in the January-September period, a growth of 3.23%, product of partial growths of 3.26% in the first quarter, of 3.45% in the second and of 2.95% in the third, due to improvements in the maintenance and transmission processes. The continuity and strengthening of the maintenance and investment work in this activity are crucial to face the growing demand of the entire economy.
Communications:
The GVA of the communications sector grew by 0.36% during the January-September 2022 period, resulting from growths of 0.28% in the first quarter; 0.15% in the second and 0.59% in the third.
The report on growth by sectors concludes that “the aggregate supply registered a punctual increase of 16.68% during the period January-September 2022, with growths of 18.99% in the first; 20.91% in the second and 11.16% in the third quarter of 2022. The increase in GDP during the January-September period (17.73%) was accompanied by an increase in imports (11.43%). Considered by quarters, imports of goods and services grew by 27.19%, 9.24% and 1.15% during the first, second and third quarters respectively.”
Great news for the country
The president of Venezuela, Nicolás Maduro, stated that the growth of the Gross Domestic Product (GDP) demonstrates the favorable results of the economic and productive activity of Venezuela, which he described as “great news” for the country.
¡Gran Noticia! El PIB creció un 17,73 %, lo que demuestra los resultados favorables del crecimiento económico y productivo de Venezuela. Son avances positivos en el 2022 y lo que vamos es pa' lante hacia un 2023 de prosperidad para el pueblo venezolano. https://t.co/3ENiKb4fbz pic.twitter.com/YSEzrSW45x
— Nicolás Maduro (@NicolasMaduro) December 30, 2022
“Great news! The GDP grew by 17.73%, which demonstrates the favorable results of the economic and productive growth of Venezuela,” he wrote on his social media accounts.
“We are going forward, towards a 2023 filled with prosperity for the Venezuelan people,” he added.
(Ăšltimas Noticias) by Victor Castellanos
Translation: Orinoco Tribune
OT/JRE/SC
