Venezuela's industry slumps to levels recorded fifty years ago

[Bacchus4.0]

http://www.eluniversal.com/economia/121119/venezuelas-industry-slumps-to-levels-recorded-fifty-years-ago

Manufacturing accounted for 14% of the GDP, the same level registered in 1965


Venezuela's oil boom hides the downfall of the country's production apparatus. Oil revenues have so far concealed the country's reality. Just like under previous administrations, the Government led by President Hugo Chávez has not taken advantage of oil revenues to expand the national industry.

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In 1965, manufacturing accounted for 14% of the GDP, the same figure recorded in the first half of 2012. Economist José Guerra asserted that said indicator shows that the national industry's production is similar to that of five decades ago.

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Indeed, imports are fulfilling domestic demand. According to estimates, purchases will amount to USD 50-52 billion this year, the country's highest record. Meanwhile, non-oil exports will stand at USD 4 billion only.

Venezuela's economic downturn is attributable to multiple reasons, namely legal uncertainty for investments, price regulations with little flexibility causing losses in many sectors, difficulties to obtain raw material or US dollars, and most importantly, a fixed foreign exchange rate that keeps local currency overvalued.

[joshcryer]

1. This is the roadmap the neoconservatives wanted in Venezuela.

The true right wing. They wanted Capriles to lose, then they wanted the economy to collapse, then they wanted Chavez to die, then they wanted to elect someone else. The scum that they are seem to be getting their wish.