Venezuela's Economy in Further Slide, President's popularity drops

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From the BBC

"These heavy-handed measures have steadily brought more of the Venezuelan economy under state control, but they have not done anything to promote economic growth. While most of the country's Latin American neighbours are leaving the global recession behind, Venezuela is still bogged down in the financial mire."

AND

"As the respected survey organisation Consensus Economics puts it: "Price controls have done little to cap price increases and the authorities have refused to tackle underlying reasons for high inflation, most likely because this would conflict with the state's socialist agenda." That may be unduly harsh. Brazil, for one, has shown that it is possible to combine left-leaning politics and social welfare programmes with a tough anti-inflationary stance.

But unlike Venezuela, Brazil realised as far back as the early 1990s that inflation hurts the poor most of all, because richer citizens can always find investment opportunities that mitigate its effects.

Unless Mr Chavez takes a similar view, he may find that his main support base will become rapidly disillusioned with his administration."


http://news.bbc.co.uk/2/hi/8464960.stm

Which leads to a drop in the President's popularity

• The popularity poll have nots are led by Venezuela's Hugo Chavez who has suffered a severe dip in his once-soaring ratings as his country has been beset with energy shortages and street protests linked to his increasingly autocratic rule.

http://www.andeancurrents.com/2010/02/south-american-president-approval.html

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1. Foreign Reserves drop from $35,8 to $28,7 billion USD so far in 2010

According to Venezuela's Central Bank

http://www.el-nacional.com/www/site/p_contenido.php?q=nodo/133293/Economía/Reservas-internacionales-caen-a-28.689-millones-de-dólares