The Venezuelan economy has grown more than 94 percent since the current expansion began in the second quarter of 2003.
1. he overwhelming bulk of this growth has been in the non-oil sector.
2. Throughout most of these five and a half years of unprecedented growth, the economy has often been characterized as an “oil boom about to go bust,” and predictions of collapse have been commonplace and often repeated. These have become more numerous of late since oil prices have fallen nearly 50 percent from a peak of over $130 in July to their current $64.48 per barrel.
3. The current financial crisis, worldwide stock market collapse, and recession in the United States, Europe, and Japan have also added to gloomy predictions for the region, including Venezuela.
Venezuela does not receive any significant foreign investment from the United States or other countries that have been hard-hit by the financial crisis and economic slowdown. The most important, and practically the only, direct impact of these external events on Venezuela is through oil prices. Petroleum exports are currently about 93 percent of Venezuela’s exports.
Contents
Introduction
Exports
Imports and Trade Balances
Conclusion
References
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Oil Prices and Venezuela’s Economy
