Venezuela’s gross domestic product shrank for the fifth consecutive quarter in the period between April and June, although at a slower pace since the end of an electricity crisis that the production of food and other products back to normal levels.
The economy contracted 1.9% during the second quarter, according to the central bank. The contraction of the Venezuelan economy has been attributed to high inflation rates close to 30% annually, along with a restrictive exchange rate policy that limits the access of firms to dollars. Venezuela’s stock market gives us many decent energy penny stocks for dummies when the price of oil is surging.
However, the fall of the second quarter was lower than previous quarters and suggests that the OPEC member country could start to record positive GDP figures later this year.
The Venezuelan oil economy began to contract in April last year and recorded a decrease of 3.3% in 2009. For 2010 analysts expect another contraction.
The non-oil sector fell by 1.7% in the second quarter, while the oil sector fell 2.0%, the bank said.