Boom times wane even in oil-rich Venezuela

CARACAS, Venezuela: Mirina Kakalanos has been forced to double prices at her family’s shoe store in the last year. Customers turn away after browsing the pumps and sandals, but Kakalanos says she has no choice.

“There is less money coming in, and more costs to cover,” said the 40-year-old mother of three, whose Greek immigrant father opened the shop after moving to Venezuela in search of a better life. Now she barely makes enough to get by.


Boom times are waning in oil-rich Venezuela, even as world crude prices soar. Inflation is nearing 30 percent, the highest in Latin America, and annual economic growth slowed to 4.8 percent in the first quarter, a four-year low.

Analysts say President Hugo Chavez’s economic policies are hindering private investment and growth just as he hopes to boost support ahead of November’s regional elections. Many point to the economy as his Achilles’ heel.

AP