Venezuela Business Opportunities

flag venezuelaVenezuela 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.

Map of Venezuela
Key Industries:
Petroleum, Construction Materials, Food Processing, Textiles, Iron Ore Mining, Steel, Aluminum, Motor Vehicle Assembly
 
Key Imports:
Raw Materials, Machinery and Equipment, Transport Equipment, Construction Materials, Agricultural Products, Medical Equipment
 
Key Exports:
Petroleum, Bauxite and Aluminum, Steel, Chemicals, Agricultural, Minerals

Trade Environment

In 2016, the Country’s leading markets for exports were U.S. 26.6%, China 11.7%, India 13.7% and Cuba 6.4%.  Its leading suppliers were U.S. 18.4%, Colombia 5.9%, Brazil 9.7%, China 15.3% and Mexico 4.2%.

Its key trade agreement is the Mercosur pact, which includes Brazil, Uruguay, Paraguay and Venezuela.

Business and Market Sector Opportunities

Oil and Gas • Information Technology • Retail • Consumer Goods • Agriculture Cattle

Economic Background and Situation

President CHAVEZ in 2007 nationalized firms in the petroleum, communications, and electricity sectors.  Voters in December 2007 rejected Chavez’s proposed constitutional changes.  Now, President MADURO, CHAVEZ's successor, still has significant control of the economy and has indicated he intends to continue to centralize authority over the economy by implementing "21st Century Socialism”.

Under President MADURO, the Venezuela government response to the widely publicized economic crisis has been to increase state control over the economy, and blame the private sector for shortages.  Additionally, the government continues to maintain strict currency controls.  The currency controls present significant obstacles to trade with Venezuela because importers cannot obtain sufficient dollars to purchase goods to maintain their operations.  

Additional Resources:
American Chamber of Commerce Venezuela
Mercosur

LetsTalk2

Venezuela Fast Facts

Capital: Caracas
Key Cities: Maracaibo, Valencia, Puerto Ayacucho
Population 30.9 million ('16 E)
GDP Growth % -6.2 (‘15 E)
-16.0 (‘16 E)
GDP 468.6 billion US$ ('16E)
GDP per Capita 15,100 US$ ('16 E)
Inflation Rate (%) 545.9 ('16 E) 
Exports 28.7 (’16 E) billion US$
Imports   27.1 (’16 E) billion US$
Exchange Rate
Local Currency-US$
56.57 ('16 E)
E = Estimate F = Forecast

 

Ask a question