August 19, 2006
Venezuela's economy continues booming as growth hits 9.2%

(Venezuelanalysis.com) - "Venezuela's Gross Domestic Product (GDP) increased by 9.2% last quarter, while inflation and unemployment have both dropped three points over the last year, according to the National Institute of Statistics (INE). This means Venezuela remains one of the world's fastest growing economies. It has grown consistently for almost three years now.

Sustained high oil prices have provided a bonanza in dollars for the government and that undoubtedly fuels the rest of the economy. But growth in the oil industry-aside from actual oil production-was slow at 1.8%, while the non-oil sector grew by 9.9%. And, contradicting the socialist rhetoric of President Hugo Chávez the private sector grew by 10.3%, more than twice as fast as the public sector, which grew at only 4.6%.

For an example of this, look no further than the balance of trade with the United States. Chávez may refer to President George W Bush as 'Mr. Danger' and Bush may call Chávez a dictator, but trade between the two countries is soaring, reaching over $40 billion last year. Oil accounts for most Venezuelan exports to the US, but non-oil exports also increased by 116% in 2005.

In return, Venezuela imports many industrial products from the US. Car imports have significantly increased over the last year. General Motors sales have risen 28%. Computers and construction equipment imports have also grown from $4.8 billion to $6.4 billion.

So it would seem that capitalism is alive and kicking in Venezuela (...). CANTV, the main Venezuelan telecommunications company, is in a dispute with its workers over pensions payments. The courts including the Supreme Court sided with the workers over the dispute, but the company has still failed to pay. 'If they don't fulfill what is required, I'm going to nationalize CANTV, ' Chávez intervened, saying",