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Economic activity in Venezuela falls 2.2% in the second quarter, according to NGO

Caracas, Sep 20 (EFE) .- Economic activity in Venezuela fell 2.2% in the second quarter of 2021, a drop notably less than the first three months of the year, when the decrease was 33.7%, The Venezuelan Finance Observatory (OVF), an independent entity that groups together several analysts, reported this Monday.

In a publication made by the organization, he outlined that “economic activity during the second quarter of 2021 registered a contraction of 2.2%”, 31.5% less than that of the previous quarter.

The OVF explained that the June, July and August review led Venezuela to record 25 consecutive quarters of decline in the economic activity index.

This indicator is made up of the oil, financial and government sectors, where the organization registers decreases due to “insufficient income and inflation.”

The NGO explained that “the bank reserve policy that limits credit” and “the reduced size of this sector” make the financier one of the most affected groups in terms of the development of its activity.

According to the organization, the downturn in economic activity has had a negative impact on the wages of active workers, retirees and pensioners in the Caribbean country, which have reduced consumption in their homes “substantially”.

On September 9, this same organization indicated that Venezuela registered 10.6% inflation and detailed that the year-on-year was 1,743%, while the accumulated so far this year is 470.3%.

The devaluation of the Venezuelan currency has led to a process of informal dollarization of the economy in which most purchases within the country are made in US currency.

(c) EFE Agency

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