Cycle Analysis
We have estimated stochastic cyclical components common (up to sign and scaling factors) to both GDP and the real price of oil. Please refer to Chart "Venezuela: Real GDP and Oil Price Cycles". The magnitude of the cyclical components is small relative to the permanent (level) components of the series. The estimated amplitude of the GDP and oil price cycles is 7462.6 and 20.8, respectively. The estimated period of the cycle, 5.7 years, is common by construction to both GDP and oil prices.