uapure, Urbanizacion Colinas de Valle
Arriba, Caracas 1080
mailing address: P. O. Box 62291, Caracas 1060-A; APO AA 34037
telephone: [58] (212) 975-6411, 907-8400 (after hours)
FAX: [58] (212) 907-8199

Flag description:

three equal horizontal bands of yellow (top), blue, and red with the
coat of arms on the hoist side of the yellow band and an arc of
eight white five-pointed stars centered in the blue band

Economy
Venezuela

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):

$334.3 billion (2007 est.)

GDP (official exchange rate):

$236.4 billion (2007 est.)

GDP - real growth rate:

8.4% (2007 est.)

GDP - per capita (PPP):

$12,800 (2007 est.)

GDP - composition by sector:

agriculture: 3.8%
industry: 38.4%
services: 57.8% (2007 est.)

Labor force:

12.37 million (2007 est.)

Labor force - by occupation:

agriculture: 13%
industry: 23%
services: 64% (1997 est.)

Unemployment rate:

8.5% (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)

Investment (gross fixed):

23.7%