12:49 EDT - As oil prices slide, crude-rich Venezuela's fiscal deficit
this election year could climb to 9% of GDP, setting the stage for a
sharp adjustment in early 2013 via spending retrenchment and currency
devaluation, predicts Bank of America Merrill Lynch. "The combination
of these two events will produce a deep GDP contraction." It currently
projects -3.5% GDP for next year, but the investment bank says the
contraction could be as much as 7.4% if the euro zone does collapse.
(charles.roth@dowjones.com)
(END) Dow Jones Newswires
June 13, 2012 12:49 ET (16:49 GMT)
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