Venezuela cuts public spending after oil price falls

The Venezuelan government says it is cutting nearly two billion dollars from its public sector spending plans for 1998 -- in part because of the fall in oil prices.

Oil accounts for about eighty percent of Venezuela's exports, and correspondents say the fall in prices is threatening the country's economic recovery.

The Venezuelan announcement follows a decision by Mexico earlier in the week to make similar spending cuts.

The Mexican government also blamed a fall in oil revenues.

From the newsroom of the BBC World Service