lstered by strong oil
prices, resulted in strong growth in 1997. However, the East Asian
financial crisis and the decline of international oil prices toward
the end of 1997 brought pressure on the currency, which Caracas was
able to stave off. Caracas readjusted its exchange rate bands and
began to allow quicker depreciation of the Bolivar; the government
also tightened monetary policy. Concerned over potential revenue
shortfalls from soft oil prices for the 1998 budget, Caracas has
implemented budget cuts to compensate for previously optimistic oil
revenue estimates. The government also has pushed ahead with sale of
the state-owned steel company and the strategic aluminum sector,
thereby reassuring domestic and international investors of Venezuela's
commitment to reform. The monetary and fiscal measures have been well
received by the international financial community. As a result,
financial analysts believe the economy will still grow at a healthy
pace in 1998, though they have lowered their initial projections for
GDP growth due to the soft oil market.

GDP: purchasing power parity-$185 billion (1997 est.)

GDP-real growth rate: 5% (1997)

GDP-per capita: purchasing power parity-$8,300 (1997 est.)

GDP-composition by sector:
agriculture: 4%
industry: 63%
services: 33% (1997 est.)

Inflation rate-consumer price index: 38% (1997)

Labor force:
total: 9.2 million
by occupation: services 64%, industry 23%, agriculture 13% (1997 est.)

Unemployment rate: 11.5% (1997 est.)

Budget:
revenues: $11.99 billion
expenditures: $11.48 billion, including capital expenditures of $3
billion (1996 est.)

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

Industrial production growth rate: 0.5% (1995 est.)

Electricity-capacity: 18.975 million kW (1995)

Electricity-production: 74 billion kWh (1995)

Electricity-consumption per capita: 3,508 kWh (1995)

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

Exports:
total value: $20.8 billion (f.o.b., 1996)
commodities: petroleum 78%, bauxite and aluminum, steel, chemicals,
agricultural products, basic manufactures
partners: US and Puerto Rico 55%, Japan, Netherlands, Italy

Imports:
total value: $10.5 billion (f.o.b., 1996)
commodities: raw materials, machinery and equipment, transport
equipment, construction materials
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