Venezuela’s Industrial Sector Eyes 10% Growth in 2024

The Venezuelan Confederation of Industrialists (Conindustria) forecasts a potential 10 percent growth for the industrial sector in the upcoming year, contingent on the continuation of eased U.S. sanctions against Venezuela.

Luigi Pisella, the president of Conindustria, shared with local broadcaster Unión Radio that the industry is anticipating growth.

“With the current scenario of eased sanctions, we’re expecting around a 10 percent increase,” Pisella noted.

This outlook hinges on the U.S. renewing licenses in April that partially lift sanctions on Venezuela’s oil and gas sectors.

Pisella highlighted the inflation trends, noting, “Over the past 10 months, inflation has remained in single digits.

Although it’s still among the highest globally, it represents progress,” contrasting with Venezuela’s recent history of hyperinflation.

Furthermore, Pisella emphasized the need for enhanced financing to boost the industrial sector’s growth.

The Venezuelan government also predicts an economic upturn this year. President Nicolás Maduro has underscored the importance of collaboration between the public and private sectors to ensure the country’s economic development.

Background

In 2023, Venezuela’s economy saw significant growth, exceeding 5%, and it’s projected to reach about 8% in 2024, as stated by President Nicolas Maduro.

This growth, amidst a prolonged crisis marked by high inflation and mass migration, indicates a noteworthy recovery.

Despite these challenges, Venezuela’s inflation rate, though still high at just under 190% in 2023, no longer tops the charts in Latin America since Argentina’s inflation exceeded 200%.

President Maduro has plans to continue boosting national production and increasing worker incomes in 2024.

His administration’s efforts seem to be yielding results, considering the economic hardships, including triple-digit inflation rates and widespread migration.

The state oil company PDVSA contributed significantly to this economic turnaround, injecting $6.23 billion into the economy last year.