The Venezuelan economy shrank 22.5 percent year-on-year in the third quarter of 2018, following a 17.6 percent contraction in the previous period, according to the first economic data release in nearly four years from the central bank. The non-oil sector shrank 22 percent, after contracting 16.2 percent in the second quarter of 2018, mostly due to construction (-67.9 percent vs -47.7 percent), finance & insurance (-52.5 percent vs -35.8 percent), manufacturing (-46.1 percent vs -30.3 percent), trade (-42.3 percent vs -29.2 percent), transport & storage (-30.8 percent vs -23.1 percent), real state (-13 percent vs -10.9 percent) and utilities (-16.2 percent vs -15.6 percent). Also, a slowdown was recorded in mining (6 percent vs 10.3 percent). Meantime, the oil sector fell 25.8 percent, after shrinking 26.7 percent in the prior quarter. GDP Annual Growth Rate in Venezuela averaged 1.62 percent from 1998 until 2017, reaching an all time high of 36.10 percent in the first quarter of 2004 and a record low of -26.70 percent in the first quarter of 2003.
GDP Annual Growth Rate in Venezuela is expected to be -26.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Venezuela to stand at -28.00 in 12 months time. In the long-term, the Venezuela GDP Annual Growth Rate is projected to trend around -20.00 percent in 2020, according to our econometric models.