Venezuela » Outlook

International Property Brokers expect VAT to drop from 14% to 9.1% in July 2007. But the longer-term impact will increase inflationary pressures by raising aggregate demand.

On the basis that tax cuts will support consumption.

The forecast has been revised up for GDP growth in 2007, from 5.1% to 5.9%. Venezuela 's GDP will only expand by 2.1% in 2008.