September 29, 2004
Prosperity is forecasted in Venezuela by Reuters survey
(Reuters, reproduced by The Miami Herald) - "Venezuela will surpass its own growth expectations in 2004 propelled by oil prices, which have allowed the government to increase public spending after two years of severe recession.

According to a poll done by Reuters during August and September, Venezuela will end the year with a growth of its Gross Domestic Product (GDP) of 13,3%, after collapsing 9,2% during 2003.

This projection more than duplicates the official growth calculations of 6,5% forecasted in the country's budget and it also exceeds more recent forecasts made by the government, of between 10 and 12%. (…)

The participants in the poll were the investment banks Credit Suisse First Union, HSBC and JP Morgan Chase; economic research firms Datanalisis, Idea Global and Metroeconómica and the Unit for Economic Investigation of the Venezuelan bank Mercantil Servicios Financieros.

Additional funds, which towards the end of the year could be between $5.000 and $7.000 million according to sources from the government, have allowed Chávez to sponsor since 2003 a series of social programmes or "missions" in the areas of health, education, employment, infrastructure and food for the poor.

Those programmes have triggered a recovery in product demand and credit, which will translate in a growth of 11,9% of the non-oil related sectors of the economy".