Maduro says Venezuela economy grew 5% in 2023, could reach 8% in 2024

By Al Mayadeen English
Source: Agencies
15 Jan 2024 23:06
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The central bank reported a slight improvement with inflation just under 190% in the previous year, compared to 234% in 2022.

Venezuelan President Nicolas Maduro delivers his annual address at the National Assembly in Caracas, Venezuela, Monday, Jan. 15, 2024(AP)

In his annual address to the Venezuelan people on Monday, President Nicolas Maduro revealed positive economic indicators for Venezuela, stating that the country experienced over 5% economic growth in 2023.

Looking ahead, he anticipates an 8% growth in 2024 despite ongoing economic challenges, including triple-digit inflation and significant emigration that were the outcome of years of US-imposed sanctions.

Maduro acknowledged that Venezuela's inflation rate, while high, is no longer the highest in Latin America, surpassed by the 200% in Argentina.

The central bank reported a slight improvement with inflation just under 190% in the previous year, compared to 234% the year before.

"In 2024 we will continue the policy of stoking national production, of recovering national income, of recovering income for workers," Maduro told lawmakers. "For this year we project a gross domestic product growth of around 8%."

Maduro emphasized the progress made in 2022, citing a growth rate of 15%. However, he also acknowledged the challenge of double-digit inflation expected in the current year.

The president highlighted the contribution of the state oil company PDVSA PDVSA.UL, disclosed that it contributed $6.23 billion to the national treasury in the past year. He clarified that this amount funded various sectors such as salaries, healthcare, education, and housing, emphasizing that it represents the company's transfer to the government and not its total earnings.

Despite stagnant production and a relaxation of US sanctions, a document seen by Reuters late last year indicated the government's anticipation of a 27% increase in income from PDVSA this year.

Temporary relief from sanctions, set until April, has elevated prices for Venezuelan crude. Analysts predict that this increased income will lead to expanded social spending, as the government aims to secure support for an upcoming presidential election.

Maduro's administration envisions a total expenditure of $20.5 billion in 2024, with oil exports and PDVSA taxes expected to cover 58%, according to a document from December.

In October 2023, the US eased sanctions following an election deal between the government and the opposition.

In December, President Joe Biden granted clemency to a Maduro ally, Alex Saab, who was unjustly abducted in a prison in the United States.

This exchange resulted in the release of 10 Americans and at least 24 opposition-linked Venezuelans.

Although a date for the election remains unset, it is anticipated to take place in the second half of the year.