Venezuela GDP growth slowest since 2004

Venezuela’s economic growth has cooled off to its lowest level in almost five years, despite an oil boom and with inflation continuing to spiral. Economists say that government measures taken to control one of the highest inflation rates in the world have dampened demand, causing annualized growth to fall well below expectations to 4.8 per cent in the first quarter, compared to 8.8 per cent last year, according to figures released by the country’s central bank late on Tuesday. Guillermo Ortega, the head of economic research in the finance ministry until early this year, says previous growth levels were not sustainable in the long term. “Obviously an economy can’t keep growing at 8 or 9 per cent forever,” he said. He argues that powerful growth in recent years is mainly due to a rebound as the economy recovered lost ground after coming to a virtual standstill during to an oil strike in 2002-03. “This level of growth is nothing to worry about. On the other hand inflation of around 30 per cent most certainly is a concern, and a danger,” he said.