The Venezuelan economy contracted in 2009 under the weight of a political crisis triggered by power and water shortages and disenchantment with government policies against dissent, analysts said.
Tough government measures to punish businesses and individuals on charges of ignoring edicts on power and water rationing, consumer goods supplies and independently run media all contributed to a muted nationwide response that reflected disapproval and disenchantment in indirect ways.
Venezuelan President Hugo Chavez has reacted angrily to any public criticism of his style of governance and its effects on the economy and general well-being of the his citizenry.
Frequent electricity power blackouts disrupted both urban and rural communities throughout 2009 and the problem continues this year. Chavez blames chronic drought for depleting water levels in reservoirs that, in turn, reduces the country's power generation capacity.
His critics say government mismanagement has also played a part in the resulting problems for the population.
Venezuela's economy gross domestic product fell 3.3 percent in 2009, including a contraction of 5.8 percent in the last quarter, the Central Bank of Venezuela said. The BVC report blamed the global downturn and falling prices for crude oil, the country's main export, for the sour figures.
BCV President Nelson Merentes said in his end-of-the-year message that Venezuela's economy had shrunk 2.9 percent in 2009, the first fall in Venezuelan GDP in five years.
The oil business declined 7.2 percent in 2009 over the previous year due to the "lower level of production." Analysts said that wholesale dismissals of experts and technicians from the oil industry after Chavez's "reforms" had played a part in the country's oil drop in productivity.
BCV said the drop in production was due to compliance with cuts adopted by the Organization of Petroleum Exporting Countries, of which Venezuela is a founding member. Venezuela says it agreed to reduce oil production by 364,000 barrels per day in 2009, leaving production at some 3 million bpd. Analysts said the reduced output was also the result of disruptions in the oil industry.
Venezuela's non-oil activity shrank 4 percent in the fourth quarter of 2009. The largest declines occurred in the areas of transport services (16.9 percent), commerce (13.9 percent), manufacturing (6.9 percent), mining (4.8 percent), construction (3.5 percent) and real estate services (2.8 percent).
Growth took place in the fields of communications, where the figure stood at 10.5 percent, electricity and water sector expanded 5.5 percent, general government services grew 2.8 percent and community, social and personal services grew 0.6 percent. However, analysts said, none of those sectors compare with the importance of industry areas that witnessed huge falls.
The government has promised "modest" growth of 0.5 percent for 2010.
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