Venezuela Economy 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):
$166 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.)

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.)

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):
20.7% (Year ending November 2007)

Investment (gross fixed):
25.4% of GDP (2007 est.)

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

Public debt:
27% of GDP (2007 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:
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 - exports:
2.203 million bbl/day (2006 est.)

Oil - imports:
0 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.)

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

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

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

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

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:
$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)

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)