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The Economy of Venezuela

Venezuelan Economy

Venezuela's map

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 9% in 2006, 8% in 2007, and nearly 6% in 2008. 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 have jumped significantly. Declining oil prices in the latter part of 2008 are expected to undermine the govenment's ability to continue the high rate of spending. President Hugo CHAVEZ in 2008 continued efforts to increase the government's contol of the economy by nationalizing firms in the cement and steel sectors. In 2007 he nationalized firms in the petroleum, communications, and electricity sectors. In July 2008, CHAVEZ implemented by decree a number of laws that further consolidate and centralize authority over the economy through his plan for "21st Century Socialism."

GDP:

GDP - real growth rate: 4.9% (2008 est.) 8.4% (2007 est.) 10.3% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 3.6% industry: 35.3% services: 61.1% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 0.7% highest 10%: 35.2% (2003)

Distribution of family income - Gini index: 48.2 (2003)

Inflation rate (consumer prices):

Labor force: 12.49 million (2008 est.)

Labor force - by occupation: agriculture: 13% industry: 23% services: 64% (1997 est.)

Unemployment rate: 8.5% (2008 est.)

Budget: revenues: $106.2 billion expenditures: $100.8 billion (2008 est.)

Industries: petroleum, construction materials, food processing, textiles; iron ore mining, steel, aluminum; motor vehicle assembly

Industrial production growth rate: -3.3% (2008 est.)

Electricity - production: 110.7 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 83.84 billion kWh (2006 est.)

Electricity - exports: 542 million kWh (2006 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 2.667 million bbl/day (2007 est.)

Oil - consumption: 738,300 bbl/day (2007 est.)

Oil - exports: 2.203 million bbl/day (2006 est.)

Oil - imports: 0 bbl/day (2006 est.)

Oil - proved reserves: 87.04 billion bbl (1 January 2008 est.)

Natural gas - production: 26.5 billion cu m (2007 est.)

Natural gas - consumption: 26.5 billion cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 4.708 trillion cu m (1 January 2008 est.)

Agriculture - products: corn, sorghum, sugarcane, rice, bananas, vegetables, coffee; beef, pork, milk, eggs; fish

Exports: $103.5 billion f.o.b. (2008 est.)

Exports - commodities: petroleum, bauxite and aluminum, steel, chemicals, agricultural products, basic manufactures

Exports - partners: US 42.7%, Netherlands Antilles 8%, China 3.1% (2007)

Imports: $53.44 billion f.o.b. (2008 est.)

Imports - commodities: raw materials, machinery and equipment, transport equipment, construction materials

Imports - partners: US 26.6%, Colombia 13.5%, Brazil 9.5%, China 6.7%, Mexico 5.2%, Panama 5% (2007)

Debt - external: $47.99 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: bolivars (VEB) per US dollar - 2.147 (2008 est.), 2,147 (2007), 2,147 (2006), 2,089.8 (2005), 1,891.3 (2004) note: On 1 January 2008 Venezuela revalued its currency with 1000 old bolivares equal to 1 new bolivar

Fiscal year: