Maduro: Venezuelan Economy Grew 4% in 2021

By Staff, Agencies

Venezuelan President Nicolas Maduro expects the South American country's economy grew by more than 4% last year, following eight years of recession and rising prices, he said during his annual address to the nation.

Venezuela's central bank has not updated figures for the country's gross domestic product since the third quarter of 2019, when GDP contracted 26.8% versus the same period in 2018.

"After five years of [US-led] economic war of boycotts and blockades, Venezuela is back on track for economic growth," Maduro said during his annual address before the National Assembly.

He also forecast economic growth in the third quarter of last year at 7.6%, without explaining further.

Last year, Venezuela's oil production doubled thanks to small oil services companies and supplies from Iran, but that does not mean state oil company PDVSA will be able to keep ramping up output, experts say.

In recent years Venezuela's commerce and services sectors have also enjoyed breathing space since the government decided to loosen economic controls in 2019 and allow greater use of foreign currency.

However, these measures have not guaranteed broad recovery across all sectors, analysts say.

Last year, the government scaled back spending in bolivars to increase monetary stability and control inflation. Even so, prices remain high and continue to hit the wallets of Venezuelan families.

Maduro also commented on the detention by the US government of Venezuelan special envoy Alex Saab, saying dialogue with the opposition in Mexico would remain paused until his release.

Saab, a 49-year old Colombian national, was arrested in June 2020 when his plane stopped to refuel in Cape Verde. The country's courts approved his extradition following a lengthy legal battle.