Venezuela, one of the world’s most sanctioned nations, set for an economic miracle –Credit Suisse
RIO DE JANEIRO, BRAZIL – Venezuela’s economy is poised to grow by as much as 20% in 2022 as a surge in production of crude triggers an eye-popping rebound for the nation’s GDP, which saw a dramatic decline amid U.S. sanctions, according to Credit Suisse economist Alberto Rojas.
The analyst added that tax collections in dollar terms in 2022 could see an enormous growth of more than 40%, while the country’s imports could expand by over 15%.
Meanwhile, Venezuela will reportedly record a current account surplus of about US$4 billion. The country managed to lower its year-end annual headline inflation forecast to 70%, from a previous projection of 150%.
To be sure, Venezuela’s economy is a fraction of the size it used to be. According to one study, the economy would have to grow 10% a year for 18 straight years to get back to its size in 1997, a year before Hugo Chavez, Maduro’s mentor and predecessor, won the presidency for the first time.
Russia’s ‘canceling’ by the West will likely lead to a “re-composition” in the global supply of oil, supporting moves to resolve the Venezuelan crisis.
The stage is set for Venezuelan President Nicolas Maduro to find “common ground” with the U.S. and possibly rethink his country’s relationship with ally and friend Russia.
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