Since 2016, Venezuela has recorded double-digit economic decline figures annually, accumulating a 52.7% contraction between 2016 and 2020, before the timid rebound celebrated by Nicolás Maduro began. During the National Council for Productive Economy, the president promised to “turn the page” with private entrepreneurs, the elimination of tariffs on raw materials and a bill to unify tax collection in states and municipalities
Luisa Quintero | Brian Contreras
Calixto Ortega Sánchez, president of the Central Bank of Venezuela (BCV), gave this Tuesday, August 23, some figures on the state of the Venezuelan economy. In a speech by the Productive Economy Council, he asserted that the country has four consecutive quarters of “double-digit economic growth.”
The highest, according to Ortega, was during the fourth quarter of 2021, when an increase of 19.07% was registered compared to the same period in 2020. The official omitted in his short appearance that since 2013 a contraction in GDP (Gross Domestic Product) of at least 80% has been reported.
He also said that during the first quarter of 2022 an increase of 17.04% was recorded compared to the same quarter in 2021. Regarding the second quarter of this year, he said there is a private sector estimate of 18.7% growth.
“There are reasons to be optimistic and expect growth for the rest of the year. In the next few days we will be updating the information on the Bank’s website », he said.
The BCV does not make public the figures of the general GDP, as well as oil and non-oil, or the amount of public and private imports and exports from the first quarter of 2019.
Since 2016, Venezuela has annually registered double-digit economic decline figures, accumulating a 52.7% contraction between 2016 and 2020, before the timid rebound celebrated by Nicolás Maduro began, which does not even mark a recovery against the decrease suffered by the national economy in 2020 as a result of the quarantine.
“Growth” and collection
The ruler Nicolás Maduro celebrated the figures given by the BCV and said that Venezuela has been able to find path to growth and a new economic model.
“I have set out very firmly to build abundant and sustainable wealth for the country. An economy that produces goods and services that satisfy domestic demand », he said.
From the Productive Economy Council held at the Miraflores Palace, he assured that hand in hand with private entrepreneurs “can lead to a decade of growth” so that the goods, wealth and other products that the country needs are produced.
For this reason, he gave his approval, although a review of several proposals is still missing, including the creation of a single productive tariff, as well as the exemption from taxes on raw materials that the national industry needs.
Regarding the production tariff, after a brief scolding by Maduro, Vice President Delcy Rodríguez said that it is “a single way to give benefits to capital goods that belong to the same production chain.”
Regarding the tax exemption proposal, he pointed out that this will also include the Value Added Tax (VAT). In other cases, they will put tariffs on finished products that enter the country and that affect the industrial sector.
When they are approved, said the vice president, everyone will be informed by presidential decree via the Official Gazette. It is also on the table, in meetings with the Colombian government, the creation of a binational trade passage with Norte de Santander.
One issue that Maduro insisted on is unifying and improving the national collection system.
According to the ruler, tax collection during the first seven months of the year, compared to 2021, experienced growth from 1,072 million to 2,449 million dollars. They expect that this year that growth will be 120%.
For this reason, he asserted that he will soon send two bills to the National Assembly elected in 2020: the organic bill for the coordination and harmonization of the powers of states and municipalities, to put an end to administrative and tax “chaos”; and the draft organic law for the protection of socioeconomic rights, to “protect against speculation and theft.”
“Turn the page” with entrepreneurs
In his speech, Maduro also said that “he wants to turn the page” with the Venezuelan private business community to achieve consensus and agreements, with whom they have had various conflicts during his administration and that of his predecessor, the late Hugo Chávez. For a long time, the guilds were not summoned to Miraflores.
Among the participants of the Council were the representatives of Fedeagro, Casetel, Consecomercio, Fundacaña, among others.
We must “turn the page” even to “achieve consensus where we do not have an agreement,” Maduro reiterated. With the businessmen, Vice President Rodríguez will act as mediator. She will also have as a priority task the monetization of reserves and “end the persecution of oil.”
On this last point, said the president, Venezuelan businessmen “can do a lot” for their relationship with the United States, “for the lobby they can do with the Treasury Department, with OFAC.”
Rafael Hernández, president of Asocaucho, said that they have had to increase production due to changes in Venezuelan consumption and thanked the Maduro administration for participating in these meetings. “We understand that we still have a long way to go in the country, but we are prepared for it,” Hernández said.
While Jaime Bracho said that they have been affected by the smuggling and safety of products by not having a health certificate and a specific weight certificate. He said that there is “a synergy” between the productive sectors and the Maduro government.
Roque Zapata, representative of the alcoholic beverage industry, also expressed the problems they experience due to smuggling from other countries, mainly Colombia, so they asked the authorities for help to prevent this crime.
For her part, Delcy Rodríguez explained that they have had 43 meetings with private entrepreneurs, 63% of them with agribusiness, which aim to increase production, protect national industry and strategic substitution of imports.
Venezuela rebounded in non-traditional foreign trade, by 76% according to ECLAC estimates, by 2021 recalled the vice president, who also seconded by saying that oil exports will not be left aside.
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