Venezuelan Consumption Forecasts Marred By Stagflation

Our short-term outlook for food and drink spending in Venezuela is poor. Unlike many of its regional peers Venezuela is struggling to escape from recession and we are forecasting an economic contraction of 3.8% in 2010 on the back of a decline of 3.3% in 2009. At the same time the country is gripped by high inflation, meaning that spending power is falling for the majority of Venezuelans. However, this dire economic environment could also hold positives in the longer term, with a fall in the popularity for President Hugo Chávez meaning that an alternative candidate could emerge victorious in

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