Credit Suisse Group AG said on Wednesday that Venezuela’s gross domestic product would grow 20% this year due to an increase in oil production.
Previously, the bank forecasted Venezuela’s economic output to 4.5% but revised its 2022 forecast while predicting that gross domestic product will expand an additional 8%forecasted in 2023, up from its previous estimate of 3%.
“These are not typos! If we are accurate, these might end up being among the strongest growth prints globally for these years,” economist Alberto Rojas said.
“However, we want to be clear, high growth prints should come as no surprise after the Venezuelan economy hit rock bottom in 2020,” Rojas added.
Credit Suisse also said that tax collections in dollar terms this year could expand to more than 40%, imports could grow over 15%, and Venezuela would record a current account surplus of about $4 billion.
According to a study, the economy would have to grow 10% a year for 18 straight years to get back to its size in 1997, a year before Hugo Chavez, Maduro’s mentor and predecessor, won the presidency for the first time.
Credit Suisse said that Russia’s invasion of Ukraine would likely lead to a “re-composition” in the global supply of oil, supporting moves to find a resolution to the Venezuelan crisis.
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