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Chávez In Economic Squeeze January 28, 2009

Posted by tkcollier in Geopolitics.
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Despite his talk of “endogenous development” and economic diversification, Venezuela is more dependent on oil now than it was when Mr Chávez took power. Oil brought in 92% of export revenues in the first nine months of 2008, compared with 64% in 1998. The 2009 budget, which foresees public spending of $78 billion, assumes an average oil price of $60 a barrel (and economic growth of 6%). Venezuelan crude, much of which is heavy (meaning viscous), currently sells for around half that figure. The budget also assumes that Venezuela produces 3.4m barrels of oil per day. Independent sources, including OPEC, say output is about 1m barrels less.

via The problems of Venezuela’s Hugo Chávez | Socialism with cheap oil | The Economist.

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