Venezuela

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

In 2004, the GDP growth rate was 17.9%; in 2005 and 2006 it was 10.3%. In 2007, growth slowed somewhat to 8.4%. The increase in the price of the barrel of oil has contributed a lot to economic recovery. Strong State demand is one of the main driving forces of the drop in unemployment and the increase in tax revenue: the State has nationalized telecommunications and electricity and launched many projects and building sites all over the country. Presently, the country is having a consumption boom. As regards debt, the country has adopted a dynamic management strategy with a drop in the interest on servicing the debt. It is clear that the economic future of the country will depend above all on the evolution of the price of oil. Inflation remains a central problem; its rate for 2007 was 22%.

Presently, the goverment is insisting on redistributing oil profits in the sectors of health, education and infrastructures. Setting up a strong regional organization, centering on economic, political and social cooperation is also one of Venezuela's priorities.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	184.25	227.75	319.44e	294.31	304.28
GDP (constant prices, annual % change)	10.3	8.4	4.8	-2.2	-0.5
GDP per capita (USD)	6,834	8,282	11,388	10,286	10,426
Inflation rate (%)	13.7	18.7	30.4	36.5	43.5e
Unemployment rate (% of the labor force)	-	-	8.5	-	-
Current Account (billions USD)	27.17	20.00	39.20e	-1.17e	12.46
Current Account (in % of GDP)	14.7	8.8	12.3	-0.4	4.1

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

The agricultural sector contributes 5% to GDP and employs 10% of the active population. Industry contributes 50% to GDP and services 45%.

Raw materials: the country has enormous oil and gas resources, gold and silver mines, bauxite and diamonds.

Agricultural products: corn, wheat, soya, sugar cane, rice, cotton, bananas, vegetables, coffee, beef and pork, milk, eggs and fish.

Venezuela exports oil, iron, bauxite and aluminum, agricultural products, semi-finished goods, vehicles and chemicals.

The country's main customers are: the United States: 58.4%, Colombia 6.6%, the EU and Mexico.

Venezuela's main suppliers are: the United States: 30%, Colombia: 10%, Brazil: 9.7%, China and Mexico.

The country imports luxury and manufactured goods, machinery and equipment, equipment for the transport sector, building materials and pharmaceuticals.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	10.7	19.8	69.1
Value added (in % of GDP)	4.0	57.8	38.2
Value added (annual % change)	3.9	3.9	11.0

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Venezuelan Bolivar (VEB) - Average annual exchange rate for 1 USD	1.89	2.09	2.15	2.15	2.15

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 39.9/100
Position:: repressed
World Rank:: 174 out of 179
Regional Rank:: 28 out of 29

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

The share of foreign trade represents about 55% of GDP. The country is trying above all to improve and increase its commercial relations with the Latin American zone, the EU and China. The share of foreign trade in GDP for 2006 was 52.9%. The share of imports of goods and services in GDP has dropped slightly: 17.4% in 2005 and 14.4% of GDP in 2006.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	10,483	17,021	24,195	32,498	45,463
Exports of goods (millions USD)	27,230	39,668	55,647	65,210	69,165
Imports of services (millions USD)	3,512	4,497	5,349	6,005	7,524
Exports of services (millions USD)	878	1,114	1,341	1,572	1,673
Imports of goods and services (annual % change)	-20.9	57.7	35.2	31.1	33.6
Exports of goods and services (annual % change)	-10.4	13.7	3.8	-4.5	-5.6
Imports of goods and services (in % of GDP)	16.7	19.2	20.5	20.9	24.7
Exports of goods and services (in % of GDP)	33.9	36.2	39.7	36.2	31.0
Trade Balance (millions USD)	16,747	22,647	31,452	32,712	23,702
Trade Balance (including service) (millions USD)	14,113	19,264	27,444	28,279	17,851
Foreign trade (in % of GDP)	50.6	55.4	60.1	57.1	55.7

Main partner countries

Main customers (% of exports)	2006
United States	50.9%
Neth. Antilles	5.7%
Spain	3.1%
Brazil	2.3%
Netherlands	2.0%
Chile	1.4%
Germany	1.3%
United Kingdom	1.3%
Canada	1.0%
Mexico	1.0%
Colombia	1.0%
Jamaica	0.7%
France	0.6%
Br. Virgin Isds	0.5%
Panama	0.5%
Aruba	0.4%
Ecuador	0.3%
Italy	0.3%
Japan	0.3%
China	0.2%
See more countries	35.9%

Main suppliers (% of imports)	2007
United States	20.2%
Colombia	8.9%
Brazil	7.2%
China	5.0%
Panama	3.9%
Mexico	3.7%
Argentina	2.3%
Japan	2.1%
Italy	1.7%
Germany	1.7%
Spain	1.6%
Chile	1.5%
South Korea	1.5%
Peru	1.1%
France	0.9%
Canada	0.9%
Switzerland	0.7%
United Kingdom	0.7%
Belgium	0.7%
Ecuador	0.7%
See more countries	54.9%

Source: Comtrade

Main products

Main exports (% of exports)	2006
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	92.6%
Iron and steelIron and steel	2.7%
Aluminium and articles thereofAluminium and articles thereof	1.8%
Organic chemicalsOrganic chemicals	0.6%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.5%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.3%
Ships, boats and floating structuresShips, boats and floating structures	0.2%
FertilizersFertilizers	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.1%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	0.1%
Articles of iron or steelArticles of iron or steel	0.1%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	0.1%
See more products	1.9%

Main imports (% of imports)	2007
Commodities not specified according to kindCommodities not specified according to kind	26.3%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	13.0%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	12.8%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	10.9%
Pharmaceutical productsPharmaceutical products	2.7%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.1%
Articles of iron or steelArticles of iron or steel	1.9%
Plastics and articles thereofPlastics and articles thereof	1.9%
Organic chemicalsOrganic chemicals	1.5%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	1.4%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.2%
Rubber and articles thereofRubber and articles thereof	1.0%
CerealsCereals	1.0%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.0%
Iron and steelIron and steel	1.0%
Ships, boats and floating structuresShips, boats and floating structures	0.9%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.9%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.8%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.8%
Meat and edible meat offalMeat and edible meat offal	0.8%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.7%
Miscellaneous chemical productsMiscellaneous chemical products	0.7%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.6%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.5%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.5%
Live animalsLive animals	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.5%
Ceramic productsCeramic products	0.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.5%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
CottonCotton	0.4%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	0.4%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.4%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Man-made staple fibresMan-made staple fibres	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.3%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Aluminium and articles thereofAluminium and articles thereof	0.3%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.3%
FertilizersFertilizers	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
Glass and glasswareGlass and glassware	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Man-made filamentsMan-made filaments	0.2%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
Ores, slag and ashOres, slag and ash	0.1%
See more products	34.3%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Finance
Statistical Office: National Institute of Statistics
Central Bank: Central Bank of Venezuela
Stock Exchange: Caracas Stock Exchange
Search Engines: Auyantepuy
Elvenezolano
Terra
Economic portals: Business News Americas

Political outline

Executive Power: President is both the chief of state and the head of the government. He is elected by popular vote for a six-year term. He has executive power. The president appoints the Vice-President. He decides on the size and composition of the cabinet and makes appointments to it with the involvement of the parliament.
Legislative Power: The legislature is unicameral in Venezuela. The parliament, called National Assembly, consist of 167 seats with its members elected by popular vote to serve five-year terms. Three seats are reserved for the indigenous peoples of Venezuela. Legislative power is vested only in the National Assembly. President has the power to veto acts of the National Assembly which in turn a simple majority of the Assembly can override. However, President has the power to dissolve the National Assembly under certain conditions. The people of Venezuela have limited political rights.
Main political parties: Venezuela has a multi-party system, where no single party ever really has the chance of gaining power alone. Therefore, parties generally work with each other in order to form coalition governments. The major parties in the country are:
- COPEI - Christian democrats; has dominated country's politics for the last fifty years;
- AD (Democratic Action) - a social democratic party, draws major support base from trade unions;
- MVR (Fifth Republic Movement) - advocates left-wing socialism and populism;
- MAS (Movement for Socialism) - a social-democratic political party;

- PPT (Homeland for All) - left-wing political party, advocates personal liberty and social justice.
The majority party of today is the one created by Presiden CHAVEZ: PSUV: The United Socialist Party of Venezuela.
Current political leaders: President: Hugo CHAVEZ Frias (since February 1999, re-elected in December 2006) - MVR, supported by MAS and PPT
Vice-president : Ramon Alonzo CARRIZALEZ (since January 2008).
Next election dates: Presidential: December 2012
National Assembly: December 2010