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South America and South Atlantic Islands
Venezuela |
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Last reviewed: 6 November 2009 |
Country information
ECONOMY
Basic Economic Facts
GDP: US$ 313.36 billion (2008)
GDP per head: US$ 11,700 (2008)
Annual GDP Growth: 18.3% (2004), 10.3% (2005), 9.9% (2006), 8.2% (2007), 4.8% (2008)
Inflation: 17.7% (2004); 13.5% (2005), 15.8% (2006), 20.5% (2007), 28% (2008)
Major Industries: Oil, Gas, Telecoms, Consumer Goods, Mining, Agriculture
Major trading partners: United States, Colombia, Brazil, Cuba, Japan, China
Venezuela's natural resources make it a country of vast economic potential. The petroleum sector dominates, accounting for 50% of central government revenue and over 90% of exports. It has the world's largest conventional oil reserves outside the Middle East and also one of the largest natural gas reserves. The economy experienced twenty-two consecutive quarters of sustained high growth up until March 2009, fuelled by high oil prices and historically low interest rates. With the global economic crisis and down turn in oil prices, the country’s income was substantially reduced. Sustained growth came to an end during the second quarter of 2009, when the economy contracted by 2.4%. Venezuela's current account is still in surplus ($4bn in Jul 09). International reserves at the Central Bank totalled US$33bn in October 2009. Debt is around 20.4% of GDP. On 1 January 2008 the national currency was revalued at a rate of 1 to 1,000 and is now called the Bolivar Fuerte (strong bolivar). It is pegged to the US Dollar and was adjusted at the time of revaluation to be worth the same value. Price controls are in place for many key items.
