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 USD482.3bn (World ranking 42, World Bank 2019)
Population 28.43mn (World ranking 50, World bank 2020)
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, 2020)

Exports Rank Imports
India 42.9%
1
25.5% United States
United Arab Emirates 10.2%
2
15.2% China
Aruba 7.2%
3
9.4% Brazil
Spain 6.7%
4
4.6% Colombia
China 6.4%
5
4.3% Mexico

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Petroleum, petroleum products and related materials 68.2%
1
9.2% Other industrial machinery and parts
Essential oils for perfume materials and cleaning preparations 3.7%
2
6.6% Medicinal and pharmaceutical products
Other transport equipment 3.4%
3
6.2% Specialised machinery
Iron and steel 2.5%
4
6.0% Road vehicles
Other industrial machinery and parts 2.3%
5
5.3% Electrical machinery, apparatus and appliances, n.e.s.
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