UPDATE 2-Venezuela economy grew 4.5 pct in 1st quarter

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Tue May 17, 2011 1:16pm EDT

* Oil sector falls 1.8 pct, non-oil GDP up 5.2 pct

* Gov't seeks to project economic "feel-good" factor (Adds details)

CARACAS May 17 (Reuters) - Venezuela's economy grew 4.5 percent in the first quarter compared with the same period last year, confirming the OPEC member government's confidence in post-recession growth, officials said on Tuesday.

The oil sector, though, contracted 1.8 percent over the same period, compared with the first quarter of 2010.

Non-oil gross domestic product rose 5.2 percent.

"Venezuela has turned the corner," Finance Minister Jorge Giordani told reporters, referring to an 18-month recession that ended late last year.

"The trend is to continue growing," added Central Bank President Nelson Merentes.

Last year the economy of the continent's biggest oil producer contracted 1.4 percent.

Officials predict at least 2.0 percent growth for 2011, enabling President Hugo Chavez to try and project an economic feel-good factor ahead of the 2012 presidential election despite inflation that is still high and a shortage of foreign currency. (Reporting by Eyanir Chinea, Writing by Andrew Cawthorne; Editing by Kenneth Barry)

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