September 2012, Mark Weisbrot and Jake Johnston

Venezuela’s current growth is generally described as unsustainable, with various negative scenarios put forth, including spiraling debt, inflation, and balance of payments crises.  However, these pessimistic forecasts have been far off the mark for most of the past decade.  This paper looks at the available economic data to see if Venezuela’s economic recovery could be sustained, or even accelerated.  It finds that Venezuela’s current economic growth is sustainable and could continue at the current pace or higher for many years.

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