ECLAC forecasts economic slowdown and high inflation in Venezuela

The Economic Commission for Latin America and the Caribbean estimates that the Venezuelan economy will grow between 1 percent and 3 percent of GDP in 2009.

Even though the government claims that Venezuela is able to cope with the global economic crisis, independent firms and analysts suggest that the fall in oil prices and output cuts approved by the Organization of Petroleum Exporting Countries (OPEC) will result in a slowdown of the economy, with a lower growth in 2009 compared to the previous year.

Some analysts and the Economic Commission for Latin America and the Caribbean (ECLAC) forecast that the Venezuelan economy will grow between 1 percent and 3 percent of gross domestic product (GDP) in 2009. These figures contrast with the government estimates that the economy will climb 6 percent in 2009.

Tumbling production in Venezuela will be accompanied by an increase in prices, which according to experts could push the inflation rate up to some 28-35 percent in 2009, well above the 15 percent target set by the Ministry of Economy and Finance, AP reported.