Venezuela Economy 2007

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. Tax collection - Venezuela's primary source of non-oil revenue - is expected to surpass $23 billion in 2006, exceeding the yearend collection goal by more than 20%. 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 higher oil prices, record government spending helped to boost GDP growth in 2004 and 2005 to approximately 18% and 11%, respectively. Economic growth in 2006 reached about 9%. This spending, combined with recent minimum wage hikes and improved access to domestic credit, has fueled a consumption boom - car sales in 2006 increased by around 70% - but has come at the cost of higher inflation. Despite government attempts to withdraw liquidity from the economy, Venezuela's money supply set a record in June 2006, approximately 70% higher than the previous year. Imports have also jumped significantly.

GDP (purchasing power parity):
$186.3 billion (2006 est.)

GDP (official exchange rate):
$149.9 billion (2006 est.)

GDP - real growth rate:
10.3% (2006 est.)

GDP - per capita (PPP):
$7,200 (2006 est.)

GDP - composition by sector:
agriculture: 3.7%
industry: 40.5%
services: 55.9% (2006 est.)

Labor force:
12.19 million (2006 est.)

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

Unemployment rate:
8.9% (2006 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)

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

Inflation rate (consumer prices):
13.7% (2006 est.)

Investment (gross fixed):
22.5% of GDP (2006 est.)

Budget:
revenues: $54.65 billion
expenditures: $54.61 billion (2006 est.)

Public debt:
24.3% of GDP (2006 est.)

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

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

Industrial production growth rate:
7% (2006 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:
3.081 million bbl/day (2005 est.)

Oil - consumption:
560,000 bbl/day (2004 est.)

Oil - exports:
2.293 million bbl/day (2004 est.)

Oil - imports:
NA bbl/day

Oil - proved reserves:
78.77 billion bbl (1 January 2006)

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:
$27.17 billion (2006 est.)

Exports:
$65.21 billion f.o.b. (2006 est.)

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

Exports - partners:
US 46.3%, Netherlands Antilles 13.5%, China 3.2% (2006)

Imports:
$32.23 billion f.o.b. (2006 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)

Economic aid - recipient:
$48.66 million (2005)

Reserves of foreign exchange and gold:
$36.67 billion (2006 est.)

Debt - external:
$41.4 billion (2006 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)

Currency (code):
bolivar (VEB)

Exchange rates:
bolivares per US dollar - 2,147 (2006), 2,089.8 (2005), 1,891.3 (2004), 1,607 (2003), 1,161 (2002)