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Moodys expects 2.1% contraction of Venezuela's economy this year

Moodys expects 2.1% contraction of Venezuela's economy this year

Posted by Dubraswka Aguilar on October 18, 2014

Venezuela's economy will shrink by 2.1% this year, amid a sustained decline in oil prices, the country's main exporting product, rating agency Moody's estimated in a statement released on Friday.

Analysts and the main economic sectors of the oil producing country told Reuters that by the end of September the fourth Latin American economy would enter recession, but the government has not released any figures on the country's economic performance.

"Moody's forecasts Venezuela's economy will decline by 2.1% in 2014," the firmed said.  This forecast is in line with other adverse projections made about Venezuela.

However, the firm estimates that next year growing expenditure in light of the parliamentary elections will slightly boost the economy by 1.2%.

Venezuelan bonds have fallen in recent weeks amid fears that the oil country could default on its millionaire foreign debt.

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