Economics &
Finance
World Bank ranks Venezuela among the
most difficult nations for business
In its report on "Doing Business 2013: Smart
regulations for small and medium business", prepared jointly with the
International Finance Corporation (IFC), the World Bank underlines
"encouraging" and "important" efforts to improve business
regulation in Latin America, headed by Chile, Perú, Colombia, México and
Panama, and points to worsened conditions in other countries such as Argentina
and Venezuela. Chile is 37th on the global rating, followed by Perú (43),
Colombia (45), México (48) and Panama (61). Venezuela ranks 180th out of 185.
More in Spanish: (Ultimas Noticias, 10-23-2012; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/venezuela-entre-los-paises-mas-complicados-para-ha.aspx)
Minister says there are no plans to
devalue currency
Venezuela isn’t studying a devaluation of its currency
next year and the government will maintain levels of spending similar to those
in 2012, El Nacional reported, citing central bank President Nelson Merentes.
The central bank is allowing foreign currency reserves to fluctuate between
U$D2 billion and U$F 5 billion, the Caracas-based daily cited Merentes as
saying. (Bloomberg, 10-19-2012; http://www.bloomberg.com/news/2012-10-19/venezuela-doesn-t-plan-to-devalue-currency-el-nacional-says.html)
2013 budget premises to be presented
to National Assembly, oil projections probably unchanged
Planning and Finance Minister Jorge Giordani is to
present the premises for the 2013 Annual Budget and the Special Indebtedness
Tax, along with the Annual Operational Plan before the National Assembly today,
says Finance Committee Chairman Ricardo Sanguino. According to economist Luis
Oliveros premises used for the oil industry will remain basically unchanged,
estimating average oil prices at U$D 50 per barrel and production around 3.1
million BPD. (Veneconomy, 10-22-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=32489&idc=2
and more in Spanish: El Mundo; http://www.elmundo.com.ve/)
Economist says Venezuela will have
no income problems in 2013
Economist Carlos Quenan estimates that due to tension in
the Middle East and China's economic recovery oil prices will remain around U$D
100 per barrel and Venezuela will continue to sail untroubled. More in Spanish:
(El Mundo, 10-23-2012; http://www.elmundo.com.ve/noticias/economia/mercados/proyectan-un-2013-sin-problemas-de-ingresos-para-l.aspx)
Public spending estimated at VEB
528.8 billion by year end
According to ECOANALÍTICA, public spending will continue
to grow and close 2012 around VEB 528.8 billion. Original estimates for 2012
were VEB 297.8 billion, but due to special authorizations it will rise by
77.6%, More in Spanish: (El Universal, 10-23-2012; http://www.eluniversal.com/economia/121023/calculan-que-el-gasto-de-2012-terminara-en-bs-5288-millardos)
Gov't seeks stronger State presence
in Venezuelan economy
Just a few months before reelected President Hugo Chávez
begins his next term, clear signals are being sent that further steps will be
taken to deepen the socialist model in Venezuela. The Government's goal is to
reinforce the presence of the State in all sectors of Venezuelan economy. As
soon as Juan Carlos Loyo was reappointed as minister of Agriculture and Lands,
he stressed that he would continue the lands "recovery" policy currently in place. "Moving forward, continuing the lands
recovery policy. Thus, it is not expropriation; it is recovery; it is about
going back to the very beginning, to the lands of the people and the indigenous
tribes. However, this time we are incorporating efficient production and
efficient trade. We do not want to see agriculture products ending up in the
hands of speculators but in the hands of Venezuelan families," Loyo
said recently after being appointed. (El Universal, 10-22-2012; http://www.eluniversal.com/economia/121022/govt-seeks-stronger-state-presence-in-venezuelan-economy)
Venezuelan bonds are good business
Alexis Mena, f the SOFTLINE economic consultant firm says
that at first sight taking a position in Venezuelan bonds appears sensible as
the nation has never once defaulted on its debt payments. He says prices have
held firm and some are even overvalued. More in Spanish: (Tal Cual, 22-10-2012;
http://www.talcualdigital.com/index.html)
Unemployment rate in September at
7.3%
Unemployment rate in September stood at 7.3%, a reduction of 1.0% versus
September 2011 (8.3%), according to the monthly report on the workforce issued by
the government´s National Statistics Institute (INE). In absolute terms, this
means 1,010,510 jobless last month. Out of them, 897,417 were laid off and the
other 113,093 unsuccessfully looked for their first job. In September
12,795,897 people were working, most of them in the formal sector of the
economy (59%). (El Universal, 10-19-2012; http://www.eluniversal.com/economia/121019/unemployment-rate-in-september-at-73)
Commodities
CVG BAUXILUM stops operations due to
lack of inputs
The shortage of polymers used for alumina refining has forced
the shutdown of the last operational stage at CVG BAUXILUM, which is the first
link in aluminum industry production process. Workers say this is the first
time that the plant has been paralyzed by shortages of any of the inputs. In
addition, workers at BAUXILUM mines have gone on strike due to delays in wage
payments. More in Spanish: (El Nacional, 10-22-2012; http://www.el-nacional.com/; El Universal, 10-23-2012; http://www.eluniversal.com/economia/121023/trabajadores-de-minas-de-bauxilum-inician-paro)
It seems impossible to raise oil
production by 522,000 barrels per day (bpd) as planned by PDVSA in its work schedule for the
Orinoco Oil Belt for this year, say sources in the local oil industry. Current
production is 1.2 million bpd. There is no other known additional pumping besides
early production announced last September by joint ventures PETROMIRANDA and PETROMACAREO
in the Junín 6 and 2 blocs. (Veneconomy, 10-22-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=32486&idc=4)
Venezuelan oil basket climbs to U$D
102.47
Venezuelan oil prices slightly surged during the week of October 15-19,
ending at U$D 102.47 per barrel on average, the Ministry of Petroleum and
Mining reported. This means a hike of U$D 0.35 in the value of the Venezuelan
oil basket over its price last week. The Ministry explained that "the hikes recorded ending last week allowed
the average prices of crude oils to finish this period on the rise, backed by
the concern about the supplies due to geopolitical tension in the Middle East
and maintenance work in the North Sea." (El Universal, 10-19-2012; http://www.eluniversal.com/economia/121019/venezuelan-oil-basket-climbs-to-usd-10247)
International Trade
Venezuela-Colombia trade agreement
enters info force
Trade relations between Colombia and Venezuela have
entered a new stage, following the entry into force of the Partial Scope
Agreement (AAP), which will regulate bilateral trade, according to the
Colombian Ministry of Trade.
The AAP will allow the entry of Colombian exports into
the Venezuelan market free from tariffs, the ministry explained. The Agreement
contains about 4,921 product lines for Colombia and 4,713 product lines for
Venezuela, AFP cited. However, the Binational Chamber of Commerce says
application of the agreement will be delayed at several customs offices that
have not yet adapted to the new system. (El Universal, 10-19-2012; http://www.eluniversal.com/economia/121019/venezuela-colombia-trade-agreement-enters-info-force; and more in Spanish: El Mundo, http://www.elmundo.com.ve/)
Meat imports from Brazil up 25% this
year
Venezuela bought 188,000 tons of meat from Brazil for a
total of U$D 590 million, as the volume of beef imports rose 25% year to date,
above the same period last year. More in Spanish: (El Mundo, 10-22-2012; http://www.elmundo.com.ve/noticias/economia/banca/importacion--de-carne-desde-brasil-sube-25--este-a.aspx)
Rules for Venezuela's adjustment to
MERCOSUR will be completed before year-end, according to Isabel Delgado, Executive Secretary of the
Presidential Commission for the accession of Venezuela to the Southern Common
Market (Mercosur), who announced the new rules "will be largely completed by the end of the year." More in
Spanish: (AVN, 10-22-2012; http://www.avn.info.ve/contenido/adecuación-normativa-sobre-ingreso-venezuela-al-mercosur-concluirá-antes-fin-año)
Logistics
& Transport
Venezuela may invest U$D 300 Million
to start flights to Beijing and Moscow
Venezuela is considering investments of up to U$D 300 million for the
purchase of long-range aircraft to begin intercontinental flights to “allied” countries like China and Russia,
according to Elsa Gutiérrez, Minister for Aquatic and Air Transport. She said
that after strengthening national and regional connections with the purchase of
six Brazilian EMBRAER aircraft at a cost of U$D 270 million, state airline CONVIASA
is now working on buying aircraft “to
serve different international destinations with direct flights.”“When we say Russia and China, we’re not
talking just about Russia and China and nothing else – we want to be able to
offer Venezuelans and businessmen access and connection facilities in a
competitive but not an unregulated way,” she said in stressing the
importance of connecting Caracas with the capitals of those two countries.
(Latin American Herald Tribune, 10-19-2012; http://www.laht.com/article.asp?ArticleId=613896&CategoryId=10717)
Politics
Gubernatorial election campaign
starts on November 1
Sandra Oblitas, the Vice-President of the National
Electoral Council (CNE), reported on Friday that the election campaign for
state governors starts on December 16. She explained that the regulations have
been endorsed and the whole election process is being assessed.
She informed that the CNE system got a positive score of
the "highest turnout" in the presidential election of October 7. The
senior officer remembered that around 15 million voters cast their ballots on
October 7. (El Universal,
10-19-2012; http://www.eluniversal.com/nacional-y-politica/121019/gubernatorial-election-campaign-starts-on-november-1)
Mitt Romney charges Obama with
weakness toward Chavez
During the last of three debates, Republican presidential candidate Mitt
Romney charged that President Barack Obama showed weakness internationally by
coming closer to Hugo Chávez, Fidel Castro and Mahmud Ahmadinejad. More in
Spanish: (El Universal, 10-23-2012; http://www.eluniversal.com/internacional/estados-unidos-2012/121023/mitt-romney-obama-mostro-debilidad-al-acercarse-a-chavez)
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