Venezuela's economic growth should accelerate to around 5 percent in the fourth quarter compared with the same period of the previous year, a central bank director said on Tuesday. After two years of contraction, the South American Opec member's economy has been recovering during 2011 thanks to high oil prices and increased government spending.
President Hugo Chavez's administration forecasts 4 percent growth this year, though critics say the economy should be faring much better given the long period of high oil prices and the weak statistical base of 2010. Third quarter growth, compared with the same three months of last year, was 4.2 percent, officials said last week.
"We should have growth nearer 5 percent in the fourth quarter", bank director Armando Leon told state TV. "That should give us about 4 percent overall for the year." The recovery from recession and the beginning of a state spending boom - mainly on low-cost housing and other social projects - are hoped by the government to create a feel-good factor prior to the October 7, 2012 presidential election.
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