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Purchasing power and consumer credit plunge in Venezuela
[El Universal] Based on economic figures at the end of 2010, consumption in Venezuela has declined, thus curbing credit card financing and car loans. In 2010, credit card loans amounted to VEB 26.66 billion (USD 6.20 billion), according to data provided by the Venezuelan Superintendence of Banks. After inflation, this represents a 2 percent fall compared to 2009. Meanwhile, ...back at the ranch... car loans decline is 22 percent, after inflation. Even though poor car supply, reduced US dollar quota to make purchases over the Internet, and restricted use of the annual US dollar quota for travels abroad have had a negative influence, the main factor is the declining purchasing power of wages. Venezuelan households have been seriously hit by the highest inflation in Latin America, as in the last 12 months prices increased dramatically by 27 percent. This surge has not been offset by modest wage increases in the private and public sectors. In real terms, after inflation, tumbling purchasing power at the end of the third quarter of 2010 amounts to 1.8 percent for workers in the private sector and 15.3 percent for public workers. Posted by: Fred 2011-01-20 |
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