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Venezuela enters recession as Maduro attacks US 'oil war' | Venezuela enters recession as Maduro attacks US 'oil war' |
(about 5 hours later) | |
The Venezuelan economy has entered recession, after contracting for the third consecutive quarter of the year. | |
The Central Bank announced that the economy had shrunk by 2.3% in the third quarter of the year. | |
President Nicolas Maduro said the Venezuelan economy had been affected by political instability and dropping oil prices in international markets. | President Nicolas Maduro said the Venezuelan economy had been affected by political instability and dropping oil prices in international markets. |
He accused the United States of flooding the markets with oil as part of an economic war against Russia. | |
The central bank also said inflation had reached 63.6% in the 12 months to November, one of the highest rates in the world. | The central bank also said inflation had reached 63.6% in the 12 months to November, one of the highest rates in the world. |
Mr Maduro announced a number of measures to boost economic growth and control inflation, including reforms to Venezuela's currency control system. | Mr Maduro announced a number of measures to boost economic growth and control inflation, including reforms to Venezuela's currency control system. |
"The details will be extensively explained after the New Year's greeting," Mr Maduro told reporters. | "The details will be extensively explained after the New Year's greeting," Mr Maduro told reporters. |
'Anti-Opec plan' | 'Anti-Opec plan' |
Mr Maduro said speculation had affected inflation but he also praised government efforts to rein in the increases. | |
He said his country was suffering the consequences of an economic war launched by US President Barack Obama "to destroy" the oil producers' cartel, Opec. | |
"It is a two-year plan, which is affecting the prices of commodities and many developing economies," Mr Maduro said. | |
"The US wants to impose a unipolar world controlled from Washington. That is madness." | "The US wants to impose a unipolar world controlled from Washington. That is madness." |
The crisis offered a "great opportunity for Venezuela to change its economic model," the president added. | |
Venezuela has the world's largest proven oil reserves, with its economy highly dependent on oil exports. | |
The Venezuelan opposition blames the socialist policies of Mr Maduro and his late predecessor, Hugo Chavez, for a shortage of many staples, such as corn oil and milk, amid a serious economic crisis. | |
The economy shrank by 4.8% and 4.9% respectively in the first and the second quarters of 2014. | The economy shrank by 4.8% and 4.9% respectively in the first and the second quarters of 2014. |