Sunday, November 30, 2014

Venezuela to cut public spending as oil price continues to slide

Venezuelan President Nicol├ís Maduro announced plans on Friday to cut public spending as the price of oil continued to fall after the Organisation of Petroleum Exporting Countries (OPEC) decided on Thursday not to cut production in order to boost prices. The price of Venezuelan oil, source of 96% of Venezuela’s foreign-exchange earnings, has dropped from $99 a barrel since June, closing at $68.08 a barrel last week, the lowest in more than four years. The country’s economy is in a deep recession and inflation is headed for triple-digit rates. Basic staples like flour and cooking oil are in short supply.

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