VENEZUELA

Bleak perspectives amid never-ending turmoil

D4

HIGH RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD287.3bn (World ranking 42, IMF 2015)
Population 28.5mn (World ranking 50, World bank 2019)
Form of state Federal Republic
Head of government Nicolas Maduro
Next elections 2023, Parliament
  • Large scale energy resources
  • Strategic geographical location between the Caribbean and South America
  • Over-dependence on oil (95% of export earnings)
  • Policies are highly interventionist and unsustainable without high oil prices
  • FX reserves decreasing rapidly despite exchange controls leading to shortages of even basic goods and penalizing the industrial sector
  • Inflation among the highest in the world
  • Increasing political tensions over constant shortages, high inflation and crime
  • Poor business environment
  • Heavy state intervention includes unpredictable nationalization in various sectors

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United States 27%
1
22% United States
China 11%
2
21% China
India 11%
3
11% Brazil
Singapore 2%
4
5% Mexico
Spain 1%
5
5% Colombia

Trade structure by product

(% of total)

Exports Rank Imports
Crude Oil 77%
1
7% Refined Petroleum Products
Refined Petroleum Products 17%
2
7% Pharmaceuticals
Non-Monetary Gold 1%
3
5% Engines
Basic Organic Chemicals 1%
4
4% Fats
Iron Steel 1%
5
4% Meat
Popular Risk Reports: Americas

Popular Risk Reports: Europe

Popular Risk Reports: Asia Pacific

Popular Risk Reports: Middle East