Venezuela Economy Profile 2009

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. 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 (purchasing power parity)

$357.4 billion (2008 est.)
$341.1 billion (2007 est.)
$314.6 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$319.4 billion (2008 est.)

GDP - real growth rate

4.8% (2008 est.)
8.4% (2007 est.)
10.3% (2006 est.)

GDP - per capita (PPP)

$13,500 (2008 est.)
$13,100 (2007 est.)
$12,300 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 3.8%
industry: 37.6%
services: 58.6% (2008 est.)

Population below poverty line

37.9% (end 2005 est.)

Labor force

12.59 million (2008 est.)

Labor force - by occupation

agriculture: 13%
industry: 23%
services: 64% (1997 est.)

Unemployment rate

7.4% (2008 est.)
8.5% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 1.7%
highest 10%: 32.7% (2006)

Distribution of family income - Gini index

48.2 (2003)
49.5 (1998)

Investment (gross fixed)

19.7% of GDP (2008 est.)

Budget

revenues: $94.14 billion
expenditures: $97.69 billion (2008 est.)

Public debt

20.4% of GDP (2008 est.)
43.1% of GDP (2004 est.)

Inflation rate (consumer prices)

30.4% (2008 est.)
18.7% (2007 est.)

Central bank discount rate

33.5% (31 December 2008)
28.5% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
17.11% (31 December 2007)

Stock of money

$79.91 billion (31 December 2008)
$63.18 billion (31 December 2007)

Stock of quasi money

$10.93 billion (31 December 2008)
$8.889 billion (31 December 2007)

Stock of domestic credit

$62.42 billion (31 December 2008)
$50.24 billion (31 December 2007)

Industries

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

Industrial production growth rate

2.5% (2008 est.)

Electricity - production

110.7 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 31.7%
hydro: 68.3%
nuclear: 0%
other: 0% (2001)

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 - imports

0 bbl/day (2006 est.)

Oil - exports

2.203 million bbl/day (2006 est.)

Oil - proved reserves

78.27 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.)

Current Account Balance

$39.2 billion (2008 est.)
$20 billion (2007 est.)

Agriculture - products

corn, sorghum, sugarcane, rice, bananas, vegetables, coffee; beef, pork, milk, eggs; fish

Exports

$93.54 billion (2008 est.)
$69.17 billion (2007 est.)

Exports - commodities

petroleum, bauxite and aluminum, steel, chemicals, agricultural products, basic manufactures

Exports - partners

US 41.2%, Netherlands Antilles 7.9%, China 4.9% (2008)

Imports

$48.1 billion (2008 est.)
$45.46 billion (2007 est.)

Imports - commodities

raw materials, machinery and equipment, transport equipment, construction materials

Imports - partners

US 24.4%, Colombia 13.9%, Brazil 9.6%, China 6.5%, Mexico 5.3%, Panama 5.1% (2008)

Reserves of foreign exchange and gold

$42.3 billion (31 December 2008 est.)
$33.48 billion (31 December 2007 est.)

Debt - external

$47.35 billion (31 December 2008 est.)
$43.33 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$41.38 billion (31 December 2008 est.)
$43.96 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$16.62 billion (31 December 2008 est.)
$13.81 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA (31 December 2008)
$NA (31 December 2007)
$8.251 billion (31 December 2006)

Economic aid - recipient

$48.66 million (2005)

Currency (code)

VEB

Currency (code)

bolivar (VEB)

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

calendar year