Venezuela Predicts 8% Economic Growth in 2024, Inflation Rate Stabilizes

Venezuela's Economic Progress in 2024

President Nicolas Maduro reported in his latest annual government-aligned legislature address that the Venezuelan economy escalated more than 5% in 2023. Moreover, the President anticipates the growth to consolidate at 8% this year. This steady economic growth materialized despite longstanding challenges such as hyperinflation and a major emigration crisis.

Reduced Inflation Rates

Interestingly, the inflation rate in Venezuela is no longer the highest in Latin America, as Argentina crossed the 200% mark. The central bank revealed last year's inflation rate in Venezuela to be slightly below 190%, indicating a decrease from its previous 234%.

Venezuela's Economic Strategy

Speaking to lawmakers, President Maduro elaborated on his growth-centric plan for 2024. He expressed the government's commitment to boost national production, improve national income, and increase workers' income. He further projected the gross domestic product's growth to hover around 8% this year.

Contributions of PDVSA to Venezuela's Economy

The state oil company, PDVSA, injected $6.23 billion into the national treasury last year, President Maduro confirmed. This amount, which was largely distributed to public services like salaries, healthcare, education, and housing, corresponds to the revenue the company handed over to the government, not its entire earnings.

Increased Earnings Forecast From PDVSA

An official document, revealed late last year, shows that the government is forecasting a 27% increase in its income from PDVSA this year. Thanks to softer U.S. sanctions and despite stagnant oil production, an uptick in Venezuelan crude prices is expected to contribute to increased revenues. This would facilitate more social spending in preparation for the forthcoming presidential election.

Venezuela's Spending Plans for 2024

For 2024, the Maduro's administration forecasts total expenditures to reach approximately $20.5 billion. According to the same official document, income from oil exports and taxes paid by PDVSA is predicted to cover around 58% of the anticipated expenses.