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Buyer Community> Trade Intelligence> Country Profiles-Venezuela> Venezuela-Economy

Venezuela-Economy

Published: 04 Nov 2008 12:59:52 PST
Economy - overview:   
Venezuela remains highly dependent on oil revenues, which account for roughly 90% of export earnings, about 50% of the federal budget revenues, and around 30% of GDP. A nationwide strike between December 2002 and February 2003 had far-reaching economic consequences - real GDP declined by around 9% in 2002 and 8% in 2003 - but economic output since then has recovered strongly. Fueled by high oil prices, record government spending helped to boost GDP by about 10% in 2006, 8% in 2007, and nearly 5% in 2008, before the world recession caused a contraction in 2009. This spending, combined with recent minimum wage hikes and improved access to domestic credit, has created a consumption boom but has come at the cost of higher inflation - roughly 20% in 2007 and more than 30% in 2008. Imports also jumped significantly before the recession of 2009. Declining oil prices in the latter part of 2008 are undermining the government's ability to continue the high rate of spending. President Hugo CHAVEZ in 2008-09 continued efforts to increase the government's control of the economy by nationalizing firms in the agribusiness, banking, tourism, oil, cement, and steel sectors. In 2007, he nationalized firms in the petroleum, communications, and electricity sectors. In January, 2010, CHAVEZ announced a dual exchange rate system for the fixed rate bolivar. The system offers a 2.6 bolivar per dollar rate for imports of essentials, including food, medicine, and industrial machinery, and a 4.3 bolivar per dollar rate for imports of other products, including cars and telephones.
 
GDP (purchasing power parity):   
$350.1 billion (2009 est.)
country comparison to the world: 33
$360.5 billion (2008 est.)
$344 billion (2007 est.)
note: data are in 2009 US dollars
 
GDP (official exchange rate):   
$357.6 billion (2009 est.)
 
GDP - real growth rate:   
-2.9% (2009 est.)
country comparison to the world: 162
4.8% (2008 est.)
8.2% (2007 est.)
 
GDP - per capita (PPP):   
$13,100 (2009 est.)
country comparison to the world: 86
$13,600 (2008 est.)
$13,200 (2007 est.)
note: data are in 2009 US dollars
 
GDP - composition by sector:   
agriculture: 4%
industry: 36.8%
services: 59.2% (2009 est.)
 
Labor force:   
12.93 million (2009 est.)
country comparison to the world: 41 
 
Labor force - by occupation:   
agriculture: 13%
industry: 23%
services: 64% (1997 est.)
 
Unemployment rate:   
7.9% (2009 est.)
country comparison to the world: 84
7.4% (2008 est.)
 
Population below poverty line:   
37.9% (yearend 2005 est.)
 
Household income or consumption by percentage share:   
lowest 10%: 1.7%
highest 10%: 32.7% (2006)
 
Distribution of family income - Gini index:   
41 (2009)
country comparison to the world: 57
49.5 (1998)
 
Investment (gross fixed):   
22.1% of GDP (2009 est.)
country comparison to the world: 69 
 
Budget:   
revenues: $66.37 billion
expenditures: $86.47 billion (2009 est.)
 
Public debt:   
18% of GDP (2009 est.)
country comparison to the world: 106
14.4% of GDP (2008 est.)
 
Inflation rate (consumer prices):   
27.1% (2009 est.)
country comparison to the world: 220
30.4% (2008 est.)
 
Central bank discount rate:   
33.5% (31 December 2008)
country comparison to the world: 2
28.5% (31 December 2007)
 
Commercial bank prime lending rate:   
22.37% (31 December 2008)
country comparison to the world: 32
17.11% (31 December 2007)
 
Stock of money:   
$78.09 billion (31 December 2008)
country comparison to the world: 19
$61.74 billion (31 December 2007)
 
Stock of quasi money:   
$10.69 billion (31 December 2008)
country comparison to the world: 62
$8.687 billion (31 December 2007)
 
Stock of domestic credit:   
$62.42 billion (31 December 2008)
country comparison to the world: 50
$50.24 billion (31 December 2007)
 
Market value of publicly traded shares:   
$NA (31 December 2008)
$NA (31 December 2007)
$8.251 billion (31 December 2006)
 
Agriculture - products:   
corn, sorghum, sugarcane, rice, bananas, vegetables, coffee; beef, pork, milk, eggs; fish
 
Industries:   
petroleum, construction materials, food processing, textiles; iron ore mining, steel, aluminum; motor vehicle assembly
 
Industrial production growth rate:   
-4.9% (2009 est.)
country comparison to the world: 111 
 
Electricity - production:   
113.3 billion kWh (2007 est.)
country comparison to the world: 29 
 
Electricity - consumption:   
83.02 billion kWh (2007 est.)
country comparison to the world: 34 
 
Electricity - exports:   
540 million kWh (2007 est.)
 
Electricity - imports:   
1.651 billion kWh (2007 est.)
 
Oil - production:   
2.175 million bbl/day (2008 est.)
country comparison to the world: 15 
 
Oil - consumption:   
760,000 bbl/day (2008 est.)
country comparison to the world: 23 
 
Oil - exports:   
2.182 million bbl/day (2007 est.)
country comparison to the world: 10 
 
Oil - imports:   
0 bbl/day (2007 est.)
country comparison to the world: 207 
 
Oil - proved reserves:   
98.59 billion bbl (1 January 2009 est.)
country comparison to the world: 6 
 
Natural gas - production:   
24.01 billion cu m (2008 est.)
country comparison to the world: 28 
 
Natural gas - consumption:   
25.51 billion cu m (2008 est.)
country comparison to the world: 31 
 
Natural gas - exports:   
0 cu m (2008 est.)
country comparison to the world: 101 
 
Natural gas - imports:   
1.5 billion cu m (2008 est.)
country comparison to the world: 49 
 
Natural gas - proved reserves:   
4.84 trillion cu m (1 January 2009 est.)
country comparison to the world: 9 
 
Current account balance:   
$8.561 billion (2009 est.)
country comparison to the world: 24
$37.39 billion (2008 est.)
 
Exports:   
$57.6 billion (2009 est.)
country comparison to the world: 40
$95.14 billion (2008 est.)
 
Exports - commodities:   
petroleum, bauxite and aluminum, steel, chemicals, agricultural products, basic manufactures
 
Exports - partners:   
US 39.8%, Netherlands Antilles 7.6%, China 4.6% (2008)
 
Imports:   
$38.44 billion (2009 est.)
country comparison to the world: 52
$49.48 billion (2008 est.)
 
Imports - commodities:   
raw materials, machinery and equipment, transport equipment, construction materials
 
Imports - partners:   
US 26.1%, Colombia 12.6%, Brazil 10.7%, China 6.9%, Mexico 4.8% (2008)
 
Reserves of foreign exchange and gold:   
$36.75 billion (31 December 2009 est.)
country comparison to the world: 43
$42.3 billion (31 December 2008 est.)
 
Debt - external:   
$43.41 billion (31 December 2009 est.)
country comparison to the world: 54
$47.03 billion (31 December 2008 est.)
 
Stock of direct foreign investment - at home:   
$38.27 billion (31 December 2009 est.)
country comparison to the world: 57
$41.38 billion (31 December 2008 est.)
 
Stock of direct foreign investment - abroad:   
$18.45 billion (31 December 2009 est.)
country comparison to the world: 40
$16.62 billion (31 December 2008 est.)
 
Exchange rates:   
bolivars (VEB) per US dollar - 2.145 (2009), 2.147 (2008), 2,147 (2007), 2,147 (2006), 2,089.8 (2005)
note: on 1 January 2008 Venezuela revalued its currency with 1000 old bolivares equal to 1 new bolivar; in January 2010 Venequela introduced a dual exchange rate system for the fixed rate bolivar, with 2.6 VEB per US dollar on essentials, and 4.3 VEB per US dollar on all other products
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