In Venezuela, the implosion of Chavez continues

[naaman fletcher]

Figures reported Tuesday by Venezuela's Chavez-controlled central bank portrayed an economy that is completely out of sync with the rest of the region — and perhaps unique in the world in the degree of its distress. Gross national product fell 5.8 percent in the first quarter, while inflation remained at 30 percent. Private investment plummeted 27.9 percent as capital continued to flee the country.

Private economists suspect the economic contraction is even worse than what the official figures concede. But let's assume they are correct. Now, contrast Venezuela's crash with quarterly growth rates of 8 percent in Brazil, Argentina and Mexico. It even comfortably exceeds the collapse of Greece's economy, which contracted 3 percent in the first quarter.

Inflation in Caracas is triple the next-highest rate in Latin America (Argentina) and is more than double that of the next-worst economy (Pakistan) among the 56 tracked by the Economist's Web site.

Even Zimbabwe, which used to be considered the world's economic basket case, looks good compared with Venezuela: It is expecting 6 percent growth this year, while inflation is under 5 percent.

In short, economic recovery is taking hold across the world — except in Chavez's Venezuela

http://www.pressdemocrat.com/article/20100601/OPINION/100539990/1042

[ChangoLoa]

1. We're really worried with this context and now with Santos designed as the future president

of "la hermana republica" (in Venezuela, we call Colombia the "sister republic", even if Colombians don't feel as close to us.. old story).