·
The entire Venezuelan economy suffered from last winter's oil industry
strike, which lasted from December through February. Its impact
on GDP in Q4 2002 and Q1 2003 is readily evident in the chart
nearby.
· The latest data, issued today by the Central Bank of Venezuela for Q3 shows a quick rebound in overall activity, but a level of GDP still more than 7% less than the pre-strike amount in Q3 2002.
· Petroleum activity weakened anew in Q3, but non-petroleum sectors are continuing a recovering phase. A good portion of that amelioration has taken place in social services, however, and while activity in the core of private industry, especially construction, manufacturing, and trade, appears to be picking up, it remains well below pre-strike volumes.
· At the same time, better performances in Venezuela's foreign trade accounts appears to be giving an assist to the overall economy. The balances of trade in both petroleum and non-petroleum products have improved markedly since strike- ridden Q1, and international reserves have increased to $18.4 billion at the end of September, the second highest month on record (the highest was $18.9 billion in November 1997).