Venezuela Economy Profile 2008

Economy - overview

Venezuela remains highly dependent on oil revenues, which account for roughly 90% of export earnings, more than 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 in 2006 by about 9% and in 2007 by about 8%. 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 percent in 2007. Imports also have jumped significantly. Embolden by his December 2006 reelection, President Hugo CHAVEZ in 2007 nationalized firms in the petroleum, communications, and electricity sectors, which reduced foreign influence in the economy. Although voters in December 2007 rejected CHAVEZ's proposed constitutional changes, CHAVEZ still has significant control of the economy and has indicated he intends to continue to consolidate and centralize authority over the economy by implementing "21st Century Socialism."

GDP (purchasing power parity)

$335 billion (2007 est.)

GDP (official exchange rate)

$226.9 billion (2007 est.)

GDP - real growth rate

8.3% (2007 est.)

GDP - per capita (PPP)

$12,800 (2007 est.)

GDP - composition by sector

agriculture: 3.5%
industry: 40%
services: 56.5% (2007 est.)

Population below poverty line

37.9% (end 2005 est.)

Household income or consumption by percentage share

lowest 10%: 0.7%
highest 10%: 35.2% (2003)

Inflation rate (consumer prices)

20.7% (Year ending November 2007)

Investment (gross fixed)

25.4% of GDP (2007 est.)

Labor force

12.5 million (2007 est.)

Labor force - by occupation

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

Unemployment rate

9.1% (2007 est.)

Distribution of family income - Gini index

48.2 (2003)

Budget

revenues: $63.27 billion
expenditures: $68.22 billion (2007 est.)

Public debt

27% of GDP (2007 est.)

Industries

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

Industrial production growth rate

5.5% (2007 est.)

Electricity - production

99.2 billion kWh (2005)

Electricity - consumption

73.36 billion kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

2.802 million bbl/day (2006 est.)

Oil - consumption

599,000 bbl/day (2006 est.)

Oil - imports

0 bbl/day (2006 est.)

Oil - exports

2.203 million bbl/day (2006 est.)

Oil - proved reserves

79.73 billion bbl (1 January 2006 est.)

Natural gas - production

27.53 billion cu m (2005 est.)

Natural gas - consumption

27.53 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

4.112 trillion cu m (1 January 2006 est.)

Current Account Balance

$17.02 billion (2007 est.)

Agriculture - products

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

Exports

$65.94 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

US 46.2%, Netherlands Antilles 13.5%, China 3.2% (2006)

Imports

$44.38 billion f.o.b. (2007 est.)

Imports - commodities

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

Imports - partners

US 30.6%, Colombia 10.2%, Brazil 10.1%, Mexico 5.9%, China 4.9%, Panama 4.8% (2006)

Reserves of foreign exchange and gold

$31.63 billion (31 December 2007 est.)

Debt - external

$45.44 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$45.4 billion (2006 est.)

Stock of direct foreign investment - abroad

$11.56 billion (2006 est.)

Market value of publicly traded shares

$8.251 billion (2006)

Economic aid - recipient

$48.66 million (2005)

Currency (code)

bolivar (VEB)

Exchange rates

bolivares per US dollar - 2,147 (2007), 2,147 (2006), 2,089.8 (2005), 1,891.3 (2004), 1,607 (2003)

Fiscal year

calendar year