[El Universal] Venezuela's economic recovery did not materialize in 2010. Not even a 27.5 percent increase in the price of Venezuelan oil compared to 2009 helped revive a number of economic sectors. On the contrary, in 2009 recession prevailed. Venezuela's slowdown is a now a far cry from the 22 consecutive quarters of economic expansion in Gross Domestic Product between 2003 and 2008.
Throughout 2010, private sector spokesmen insisted that new barriers were set on local production, imports and sale of finished products in the domestic market. "The year ends with a declining industry that has been weakened as a result of wrong government policies," Carlos Larrazabal, the president of the Venezuelan Confederation of Industries (Conindustria) said in December.
At the beginning of 2010, the government announced a devaluation that moved the US dollar from VEB 2.15 to VEB 2.60 and VEB 4.30 per US dollar. The immediate effect was a change in cost structures and the establishment of a cumbersome exchange system.
In addition to these obstacles to get foreign exchange, Venezuela was affected by a power crisis in the first half of 2010. Last year was also characterized by expropriations. According to data released by Conindustria, the government seized 234 private companies in 2010.
Venezuela's GDP fell 1.9 percent, while trade and manufacturing shrank 6.3 percent and 4.2 percent, respectively.