Venezuela oil GDP grew 12.27% in 2Q: central bank

Venezuela oil GDP grew 12.27% in 2Q: central bank

Venezuela's central bank reported a 12.27% growth in the country's oil GDP in the second quarter of 2025, marking a significant increase compared to the previous quarter. This growth is attributed to a rise in oil production, which has been a longstanding pillar of Venezuela's economy. The central bank also noted that this growth is part of a broader economic trend, with the country's overall GDP showing signs of recovery [1].

However, the narrative surrounding Venezuela's economic performance is not without its complexities. While the government celebrates the growth, independent data and international forecasts paint a different picture. Non-government experts estimate that the country's economy grew by only 1.4% in the first quarter of 2025, a figure that is significantly lower than the government's reported 9% GDP rise earlier in the year [1].

The oil industry, which has traditionally been the backbone of Venezuela's economy, continues to face challenges. Current production stands at about 910,000 barrels per day, which is much lower than a decade ago. Despite the recent growth, this production level is not sufficient to drive long-term, sustainable economic growth [1].

Furthermore, the banking sector shows signs of increased credit, but interest rates remain high, hovering around 60%. This makes borrowing costs prohibitive, which in turn keeps real investment down. The mass migration of over 6 million Venezuelans in recent years, more than a quarter of the population, serves as a stark reminder of the ongoing economic crisis [1].

For businesses and international partners, the disparity between government reports and the reality on the ground is a crucial consideration. Reliable, independent data remains essential when making decisions about investment, trade, and aid. The truth about Venezuela's economy is more than just the numbers reported by the government; it is reflected in the daily struggles of the population and the ongoing challenges faced by the country's economic sectors [1].

References:
[1] https://www.riotimesonline.com/venezuelas-economic-lift-real-growth-or-just-good-pr/