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Venezuela growth at five-year low | Venezuela growth at five-year low |
(about 3 hours later) | |
Venezuela's economy grew at its slowest rate in five years during the first quarter, as the country felt the effect of falling oil prices. | Venezuela's economy grew at its slowest rate in five years during the first quarter, as the country felt the effect of falling oil prices. |
In the first three months of the year, output rose 0.3% from the same period a year earlier, the slowest level since 2003, the Central Bank said. | |
Compared with the previous quarter, the economy shrank by 16.4%. | |
Crude oil prices are more than half their peak of around $147 a barrel seen last July, hit by the global slowdown. | Crude oil prices are more than half their peak of around $147 a barrel seen last July, hit by the global slowdown. |
While prices have recovered slightly recently, they are hovering around $60 a barrel. | |
Venezuela depends for more than 90% of its exports on oil. But as the price of oil has fallen, oil-producing cartel Opec, which includes Venezuela as a member, decided to reduce output to boost prices. | |
The first quarter saw a contraction of 4.8% in the oil sector. | The first quarter saw a contraction of 4.8% in the oil sector. |
Revenues from crude oil are down 56% this year, leading to a $3.5bn (£2.26bn) current account deficit. | Revenues from crude oil are down 56% this year, leading to a $3.5bn (£2.26bn) current account deficit. |
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