Venezuelan President Hugo Chàvez has said that fixing the price of a barrel of oil at US$50 is fair. Venezuela has "the world's largest hydrocarbon reserves," enough for about 200 years," he said. A long-term agreement at that price will allow Caracas to count its crude oil deposits, both heavy and extra-heavy, as part of its official hydrocarbon reserves, adding 235 billion barrels to the country's active supplies.
Mexico ranks first in competitiveness in Latin America, based on manufacturing exports, foreign direct investment (FDI) and per capita income, Mexican Economy Secretary, Sergio Garcia de Alba, said. In 2005 Mexican manufacturing exports totalled $175 billion, up 10.6% year-on-year. It attracted $17.8 billion in FDI, which was the highest level for Latin America, ahead of Brazil, which attracted $15.5 billion. In 2005 Mexico registered annual per capita income of $7,450. The next highest in the region was Chile, which stood at $6,220.
The Asian Development Bank expects the Chinese domestic currency to appreciate by 3% this year. The Bank has made its projection based on discrepancies between the US dollar and a basket of currencies that China uses to set its currency against the US dollar. The ADB's China Mission's Chief Economist, Tang Min, said the forecast represents the expectation of the currency market.
The Bank of Thailand said that the business confidence index declined from 45.2 points in January 2006 to 45 in February 2006, making February 2006 the 22nd consecutive month in which business confidence has remained below 50. According to the central bank, confidence on sub-indexes for investment, operational costs, and purchase orders all declined.
Slovakia's GDP growth should accelerate by 0.4% to 1% each year after the adoption of the euro, the National Bureau of Statistics estimated in an impact analysis of entry into the eurozone. According to the bank, the businesses would realize savings after the adoption of the single currency from exchange rate risk and transaction costs. The latter were calculated at 0.36% of GDP annually. The central bank underlined that any plans to delay the entry in the eurozone might also delay the benefits from the single currency. Some of the positive impact on company profits was also expected to be transferred to higher wages for the employed.
Hungarian centre-right opposition party Fidesz will launch negotiations with current junior opposition MDF to form the next government, Fidesz's campaign chief Antal Rogan announced on public TV late on Sunday night. An alliance became an option after it became clear that MDF passed the 5% threshold for parliamentary representation, contrary to the results of the most recent polls. Rogan expressed confidence that after the second round of the elections on April 23rd, Fidesz and MDF will be able to replace the current MSZP-SZDSZ (socialist-liberal) government.