• DECEMBER 29, 2009, 8:38 P.M. ET

Venezuela Central Bank Estimates 2.9% GDP Contraction For '09

CARACAS (Dow Jones)--The Venezuelan economy contracted 2.9% in 2009, confirming the country's first recession in five years, according to preliminary estimates published Tuesday by the Venezuelan Central Bank.

The economy was dragged down by a slump in the oil sector, which suffered a 6.1% decline in the year, the central bank said in its year-end report. Non-oil gross domestic product dropped 1.9%.

Manufacturing activity, which has been one of the main factors driving down economic activity in 2009, dropped 7.2% in the year, while mining fell 10.2%.

The balance of payments posted an $11 billion deficit. The country's current account posted a $12.4 billion surplus, down 66.8% against the previous year, as a result of a decline in revenue from oil exports. The decline was partly the result of a 32.7% drop in the price of Venezuela's basket of oil products.

-By Darcy Crowe and Dan Molinski, Dow Jones Newswires; (58) 414 249 6821; darcy.crowe@dowjones.com