Venezuela registers two consecutive quarters of economic contraction

The Venezuelan economy registers a 7 % drop, after two consecutive quarters of contraction. This has been indicated by the Venezuelan Finance Observatory, OVF.

The agency has indicated this Wednesday that a new recessive cycle is appreciated “compared to the same period last year.

According to OVF analyses, during the first quarter of 2023 “the country’s economic activity contracted 7.6 % compared to the same period of the previous year, while, between April and June, it fell by 6.3 % compared to the second quarter of 2022.”

Ángel Alvarado, a member of the observatory, stressed that the national economy has been accumulating, since the end of 2021, seven quarters of decline.

Among the reasons for this persistent drop in economic growth in Venezuela, the OVF highlights the low remuneration of workers and credit restrictions that “inhibit any financing to economic sectors.”

M.Pino

Source: americaeconomia

(Reference image source: Unsplash, in collaboration with Getty Images)

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