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Economy / Venezuela

Fiscal Challenges Beyond The Election

June 2012 | Economic Analysis

The ramping up of social spending in Venezuela ahead of the October elections will widen the fiscal deficit from 8.8% of GDP in 2011 to 11.6% in 2012, before narrowing to 8.3% in 2013 as the levels of pre-electoral spending fade. We believe the precarious fiscal trajectory of the country is unsustainable, and will lead to policy changes beyond the elections.

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