CARACAS, (Reuters) – Venezuela’s economy could grow by 20% in the coming year according to an investment bank Credit Suisse (SIX) stated in a report that it had increased its forecast by 4.5% due the growing demand for crude oil since Russia’s invasion of Ukraine.

Credit Suisse forecasts a 2023 growth in gross domestic products (GDP) of 8%. This is up from an earlier estimate of 3%.

“These are not typos!” “These might end up to be among the most strong growth prints worldwide for these years,” said the April 6 dated Report.

Venezuela’s economy reached “rock bottom” in 2020. According to the forecast, the future outlook is heavily based on the assumption that oil GDP will increase by at least 20%.

In March, a high-ranking meeting in Caracas between U.S. officials and Venezuelan officials opened doors for talks on a potential lifting of the sanctions Washington imposed upon Venezuela’s oil sector since 2019.

Credit Suisse claimed that Venezuela would make up for the lack of Russian oil. They pointed out that USA imported 700,000 barrels per days (bpd) from Russia in 2021. Venezuela’s last-year oil export capability was between 500,000 bpd to 700,000 BPD.

According to it, “It appears possible that Venezuelan authorities could pump this number up with the loosening or sanctions.”

“Suddenly, in oil supply worries, many have remembered that some of the most important oil resources in the world were in a country not too far from the U.S.”

Petroleos de Venezuela state-owned oil company (PDVSA), and other companies have taken steps to prepare for higher oil exports due to the prospect of lifting sanctions. Export data shows that PDVSA remains hampered by decades of poor management and a lack of basic infrastructure maintenance for oil production, storage, refinement, and export.