Analysts warn Chavez economic plans insufficient

March 24, 2009 04:03


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


A set of economic measures introduced by President Hugo Chavez will boost state coffers as oil income falls, but do little to address Venezuela's most serious economic problems, including soaring inflation and slowing growth, analysts said Monday. Faced with plunging oil income, Chavez has asked lawmakers to hike sales taxes and nearly triple domestic debt sales this year. Yet analysts say the measures won't draw enough cash to keep Venezuela from running its first budget deficit since 2003, and will only further fuel Latin America's highest inflation. "The package is concentrated on closing this fiscal gap, but it won't close," said Leonardo Vera, an economist at Venezuela's Central University, who expects the deficit to reach $2 billion this year as oil income slips more than 60 percent to about $31 billion. Venezuela relies on oil for 93 percent of exports and nearly half its federal budget. But world crude prices have slipped 63 percent since their July peak, slashing a key source of income. To compensate, Chavez has asked the legislature to revise its 2009 budget, cutting spending by 6.7 percent in anticipation of $40-a-barrel crude, not $60-a-barrel, as it forecast last year.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Yitzhak Rabin
September 22, 2018
The Olso Agreement was assassinated with Rabin