Venezuela sees economy skirting recession-report

[Judi Lynn]

Venezuela sees economy skirting recession-report
Sun Aug 23, 2009 1:45pm EDT

CARACAS, Aug 23 (Reuters) - Venezuela's economy, which shrank for the first time in five years in the second quarter, will likely avoid recession and could grow modestly this year, the finance minister said in an interview published on Sunday.

Finance Minister Ali Rodriguez said the government was working to stimulate growth and an expansion of 1 percent was not out of the question, according to an interview with local newspaper Ultimas Noticias.

"There is no recession. By convention, a recession exists when there are two consecutive quarters of negative growth. We are not in that situation," Rodriguez said.

The economy shrank 2.4 percent in the second quarter as the government reduced spending to compensate for lower oil revenue while the nationalization of swathes of the economy dampened the private sector's appetite for investment.

More:
http://www.reuters.com/article/bondsNews/idUSN231254082...