Some construction continues in Caracas despite steep recession

Global Business

some-construction-continues-in-caracas-despite-steep-recession

Venezuela’s deep recession and 700 percent annual inflation have hit all sectors of the economy hard. But there are some exceptions to the rule.

CCTV America’s Stephen Gibbs reports. 

Some construction continues in Caracas despite steep recession

Some construction continues in Caracas despite steep recession

Venezuela's deep recession and 700 percent annual inflation have hit all sectors of the economy hard. But there are some exceptions to the rule. CCTV America's Stephen Gibbs reports.

At ground level, there are plenty of signs that Caracas is a capital city in trouble.

But, major private sector construction works are ongoing: offices, shopping malls, corporate headquarters.

So, are the investors behind projects like this somehow immune from the recession that is causing so many problems in the wider Venezuelan economy?

Paradoxically, it is yet another symptom of this country’s economic troubles.

National and international companies with large amounts of fast-devaluing local currency are unable to get their money out, owing to capital controls.

Building here is not easy, but it may be the least bad option.

And there is one other factor – cheap real estate at the moment. After all, for all its troubles, this is the capital of the country with the world’s largest proven oil reserves.

Some will be betting on better times ahead, hoping to buy low and sell high.