Photo: Oswaldo Pacheco
On October 19, the Venezuelan Central Bank (BCV) published new data for the year 2019, which shows the deepening of the crisis in all sectors of the economy at the national level. According to data provided by the institution, for the first quarter of 2019 the Gross Domestic Product (GDP) fell by 26.8% which represents a cumulative fall of more than 60% in the 2013-2019 period.
Inflation in the month of July was 19.4%; in August it was 34.6%; while in September it was 52.2%, showing an inter-monthly increase that reflects the weaknesses of the government’s policies to stop the inflationary process such as the loans restrictions in the financial sector and the contraction of demand with the holding back of wage increases. Also, the construction sector reflected the largest contraction falling 74.1%; followed by the commercial sector with 39.2%; manufacturing 56.3%; financial institutions and insurance 55.6%; mining 35.7%; transportation and storage 28.2%; government services in general 23.2%; oil activity 19.1%; electricity and water 16.1%; real estate services 13.2%; and communications 12.1%.
These figures show that the objectives set forth in the official discourse of the Program for Recovery, Growth and Economic Prosperity implemented by Nicolas Maduro’s government from August 2018 to the present have not been met. In reality, this package of government measures continues to impoverish the living conditions of the working people and reduce the wage costs for the State and taxes for private business, but without achieving a re-establishment of the process of capital accumulation.