UPDATE 5-Venezuela's economic slide worse than expected

* GDP shrinks 4.5 pct Q3, key oil sector down 9.5 pct

* Local economists see Venezuela now in recession

* Finance minister sees 2.2 pct fall this year

* Minister sees modest 20010 recovery (Adds finance minister comments)

By Ana Isabel Martinez

CARACAS, Nov 17 (Reuters) - Venezuela on Tuesday announced a surprisingly large third-quarter economic fall, shocking analysts and leaving the South American oil exporter's economy on course for a bigger contraction then previously thought in 2009.

Despite previous assurances by President Hugo Chavez's government that its version of "21st century socialism" would protect Venezuelans, the Central Bank said lower oil revenues and the international downturn brought a 4.5 percent decline in the quarter.

It was the second straight quarterly drop this year, and local economists said Venezuela was now in recession even though the government has not formally said that.

"This is much, much worse than we expected," said Asdrubal Oliveros, director of Venezuelan group Ecoanalitica.