Now the Venezuelan caudillo wants to apply the same socialist formula to GDP measurement methodology, after the Central Bank published figures indicating that the country is, officially, in recession, with a GDP contraction of 4,5% in the last quarter. Here's an interesting bit of information, from Goldman Sachs' analyst Alberto Ramos:
The performance of real activity economy continues to deteriorate and the economy is developing growing symptoms of Dutch Disease (atrophy on non-commodity tradable sectors of the economy) and stagflation (inflation continues to accelerate despite the contraction of the economy during 2009). Real GDP declined a larger than expected 4.5% yoy during 3Q2009 (down from -2.4% yoy during 2Q2009); the market consensus was for a decline between -2.0% and -1.0%.. The very poor performance of real GDP during 3Q was driven the large 10.7% yoy decline in domestic demand. Private consumption declined -4.8% yoy during 3Q (from -2.6% yoy during 2Q), and investment spending retrenched a large -14.5% yoy (from -2.8% yoy during 2Q). Public consumption grew 2.6% yoy during 3Q. Private consumption spending continues to slow down as entrenched inflation (core inflation is running above 36% yoy) is eroding real disposable income and credit growth is decelerating fast while investment has been impaired by a business unfriendly policy mix.
Therefore expect a flurry of 'economic analyses' from Mark Weisbrot, and other such apologists, and, certainly, a blast of statements from Chavez and his top minions officials.