Falling Oil Prices Could Force Venezuela to Veer off the Chávez Formula


Wilson, Peter [2014], “Falling Oil Prices Could Force Venezuela to Veer off the Chávez Formula”, Business Week, New York, 28 de agosto, http://www.bloomberg.com/bw/articles/2014-08-28/falling-oil-prices-could...

Business Week
Fecha de publicación: 
Jueves, Agosto 28, 2014
Idea principal: 

Venezuela's embattled Nicolas Maduro has spent most of his 19-month presidency fighting to avoid changing any of the economic policies he inherited from his predecessor, the late Hugo Chavez. Maduro has repeatedly told his countrymen that Chavez's socialist blueprint is working in spite of mounting shortages, soaring inflation, and two maxi-devaluations in the past two years. Now falling oil prices may force his hand. The price of Venezuela's benchmark basket of crude and petroleum products fell on Aug 22 to $90.89, a two-year low. For Venezuela, each $1 drop in the per-barrel price translates into a $1 billion loss of government revenue. With a fiscal deficit already estimated at 14% to 15% of GDP, the fall in prices alarms many, especially as domestic oil production continues to slide.