February 26, 2005
Venezuela economy grew by 17,3 % in 2004

(Economist Intelligence Unit - Country Watchlist: Venezuela) - "The economy grew by a record 17.3% in 2004. Following market contractions in 2002 and 2003, GDP grew by 17.3% last year, according to preliminary data from the Central Bank. From the supply side, oil sector output surged by 8.7%, aided by high international crude prices. However, this increase was eclipsed by non-oil sector growth, which, supported by gains in all branches of industrial activity, increased by 17.8%. The construction sector recovered strongly last year, expanding by 32.1% following a drop of 38.5% in 2003. Manufacturing, which now accounts for a slightly larger share of output at factor cost-17% compared with 14% in 2003-jumped by 25.4%.

In 2005 government spending will provide continued demand stimulus. There is also likely to be an increase in energy investment now that the presidential recall referendum of last fall is out of the way. Consequently, Venezuelan GDP growth is expected to exceed 5% next year (...)".