Caracas (AFP) – Venezuela’s economy grew by 8.7 percent in the third quarter, the country’s central bank announced Thursday, but residents told AFP they are still struggling to make ends meet. The boost stems largely from a 16.12 percent increase in oil activity, the central bank said as it praised the “dynamism” of the country’s economic activity. The Caribbean country began to return to growth in the second quarter of 2021, after experiencing hyperinflation for four years and an 80 percent drop in its GDP.
But Venezuelans said daily costs remain high, after runaway inflation rendered the bolivar currency essentially worthless. “Blessed be those whose economy has grown because mine has me crying every night and every day,” Carolina Serrada, a 28-year-old pastry chef, told AFP. Serrada added that the cost of living often depends on the exchange rate with the dollar, which has been used for transactions since 2018. That decision also opened the door to a black market, where the dollar is currently trading at 280 bolivars compared to 203 officially.
Ingrid Flores, a 35-year-old social media content creator, said she has yet to see any improvement in her finances. “Claiming that there is GDP growth is something positive, but I don’t see prosperity or the end of the crisis,” she told AFP. Venezuela’s central bank has not reported on inflation for a year. Prices increased by 48 percent in 2024, according to President Nicolas Maduro, down from 189.8 percent a year earlier.
Venezuela attributes the economic instability to US sanctions in 2017 and the oil embargo imposed in 2019, the year in which inflation reached 344,000 percent.
© 2024 AFP
