Venezuela Overview

After experienced in 2004 one of the strongest growth in the American continent, Venezuela's economy slackened in 2005. Annual GDP growth rate was 17.3% in 2004, 9% in 2005 and is estimated at 7% in 2006 by the IMF. The country should consequently go back to a sustained growth, especially thanks to oil exports revival but Venezuela still has to face significant social and political tensions: unemployment rate exceeds 20% of the active population and poverty affects 60% of Venezuelan households.

The agriculture sector provides 5% of the GDP and employs 12% of the active population. Venezuela's mining natural resources are exceptional. Oil ensures a major part in the economy. Venezuela is the fourth largest exporter and the seventh largest producer of oil in the world. The country also holds 3% of the world's total gas reserves. Manufacturing and trade which are two key sectors of the economy have been hardly hit by the recession. Foreign investors' confidence has been badly affected by recent political tensions.

The country's external trade is dominated by oil which adds up to 80% of export earnings. Venezuela is the United States' third oil supplier. The country's top three export partners are the United States, Colombia and Mexico. Its top three import partners are the United States, Colombia and Brazil. The country mainly imports machinery, vehicles, chemical products and manufactured products.