Venezuelan economy grew 2.5 percent in 2nd quarter

AP News
Posted: Aug 25, 2011 7:54 PM
Venezuelan economy grew 2.5 percent in 2nd quarter

Venezuela's economy expanded 2.5 percent in the second quarter, holding on to growth but slowing after a rapid jump in the first quarter of the year, the Central Bank said Thursday.

The South American country's economy expanded 4.8 percent in the first quarter.

Growth in the second quarter was driven in part by a 3.7 percent expansion of the public sector, the Central Bank said in its quarterly figures.

The private sector grew by 1.9 percent between March and June, far below the 4.7 percent growth during the previous quarter.

The key oil industry grew by 0.8 percent during the second quarter, up from a decline of 0.5 percent in the first quarter.

The Central Bank said the oil sector's recovery was due to a 4.4 percent increase in oil production and also higher oil prices, which grew 51.7 percent between March and June.

The latest figures show that Venezuela's economy has grown 3.6 percent in the first half of this year, rebounding after contracting 1.4 percent during 2010.

Sectors that saw particularly strong growth during the quarter included the financial sector, with 9 percent, and retail, with 6.8 percent. The construction sector declined by 2.3 percent.