Venezuela

Capital: Caracas

Local time:
It is %T:%M %A in Caracas

Exchange rate on :

GDP growth rate: 0.466% in 2012

FDI inward stock: 43 957 million USD in 2007

Country risk: See the country risk analysis from Venezuela provided by Ducroire.

Economic trends

Venezuela's economy was strongly affected by the global economic crisis. The growth of GDP became negative in 2009. However, the country has significant oil resources, which have allowed Venezuela to continue its trade with the rest of the world, mainly with the United States. Due to this reason, the country depends very much on the fluctuation of oil prices.

Currently, the government has placed more emphasis in redistributing its oil profits in the health, education and infrastructure sectors. It is also a priority for Venezuela to set up a strong regional organization targeting on economic, political and social cooperation. In this time of crisis, the country has decided to suspend all unnecessary expenses.

The country's wealth is unequally distributed among the population. The unemployment rate has reached 7% in 2008 and almost 40% of the population live below poverty level.

Main branches of industry

In 2008, the agricultural sector contributed 4% to GDP and employed about 11% of the active population. The main agricultural products of the country are: corn, wheat, soya, sugar cane, rice, cotton, bananas, vegetables, coffee, beef and pork, milk, eggs and fish. Venezuela benefits from important natural resources: oil, gas, gold and silver mines, bauxite and diamonds.

The industrial sector represents more than 50% to GDP and employs close to 20% of the population. The main industrial activities are oil (controlled by a state's company, oil represents the first natural wealth source of the country), construction material, foodstuffs, textile, iron, steel, aluminum and motor-car assembly.

The service sector represents a little less than 40% to GDP and employs 70% of the active population.

International trade

The share of foreign trade represents about 50% of GDP. The country is trying above all to improve and to increase its commercial relations with the Latin American zone, the EU and China.

Venezuela exports oil, iron bauxite and aluminum, agricultural products, semi-manufactures, vehicles and chemical products. Its exports represented 94.5 billion USD in 2008. Its principal export partners are:  United States, West Indies and China.

The country imports manufactured and luxury products, machinery, transportation equipment, construction material and pharmaceutical products. Imports represent 41.1 billion USD. Its main import partners are: United States, Colombia, Brazil, China and Mexico.