Venezuela economy grew 8.4 pct in 2007-central bank

CARACAS, Dec 30

Venezuela's economy expanded 8.4 percent in 2007 despite a contraction in the oil sector, the backbone of the South American nation's economy, the central bank said on Sunday.

The bank said the oil sector had shrunk 5.3 percent in the year, but 9.7 percent growth in non-oil parts of the economy had compensated.

In its end-of-year statement, the bank said the public sector grew 15.7 percent in 2007, while the private sector, which represents 60 percent of Venezuela's gross domestic product, grew 8.2 percent.

The left-wing government of the oil-rich nation has used income from high oil prices in recent years to fund social spending and expand the state.

Consumer spending grew 18.7 percent in the year due to lower unemployment and increased household incomes, the banks said.