Venezuela News & Trade

TRADE -Economy

Venezuela continues to be highly dependent on the petroleum sector, accounting for roughly one-third of GDP, around 80% of export earnings, and almost half of government operating revenues.

Venezuela facts by cia.gov

GDP - real growth rate:
9.3% (2005 est.)
GDP - per capita (PPP):
$6,400 (2005 est.)
GDP - composition by sector:
agriculture: 4%
industry: 41.9%
services: 54.1% (2005 est.)

Labor force - by occupation:
agriculture: 13%
industry: 23%
services: 64% (1997 est.)
Unemployment rate:
12.2% (2005 est.)
Population below poverty line:
47% (1998 est.)
Household income or consumption by percentage share:
lowest 10%: 0.8%
highest 10%: 36.5% (1998)

Inflation rate (consumer prices):
16% (2005 est.)

Government revenue also has been bolstered by increased tax collection, which has surpassed its 2005 collection goal by almost 50%. Tax revenue is the primary source of non-oil revenue, which accounts for 53% of the 2006 budget. A disastrous two-month national oil strike, from December 2002 to February 2003, temporarily halted economic activity. The economy remained in depression in 2003, declining by 9.2% after an 8.9% fall in 2002. Output recovered strongly in 2004-2005, aided by high oil prices and strong consumption growth. Venezuela continues to be an important source of crude oil for the US market. Both inflation and unemployment remain fundamental problems.

Agriculture - products:
corn, sorghum, sugarcane, rice, bananas, vegetables, coffee; beef, pork, milk, eggs; fish
Industries:
petroleum, construction materials, food processing, textiles; iron ore mining, steel, aluminum; motor vehicle assembly
Exports - commodities:
petroleum, bauxite and aluminum, steel, chemicals, agricultural products, basic manufactures
Exports - partners:
US 51.2%, Netherlands Antilles 7.3%, Canada 2.4% (2005) Imports:
$24.63 billion f.o.b. (2005 est.)
Imports - commodities:
raw materials, machinery and equipment, transport equipment, construction materials
Imports - partners:
US 31.6%, Colombia 11%, Brazil 9.1%, Mexico 6.9% (2005)

Citgo Petroleum Corporation is controlled by the Venezuelan government

Citgo refers to its logo as the "trimark." A large, double-faced sign featuring this logo overlooks Fenway Park in Boston, Massachusetts from Kenmore Square and has become a landmark, partly because of its appearance in the background in televised baseball games. The current 60-foot by 60-foot incarnation, unveiled in March 2005 after a six-month restoration project, features thousands of light-emitting diodes.

Venezuelan Oil - production:
3.081 million bbl/day (2005 est.)
Oil - consumption:
530,000 bbl/day (2003 est.)
Oil - exports:
2.1 million bbl/day (2004 est.)
Oil - imports:
NA bbl/day
Oil - proved reserves:
75.59 billion bbl (2005 est.)
Natural gas - production:
29.7 billion cu m (2003 est.)
Natural gas - consumption:
29.7 billion cu m (2003 est.)

September 2006, Venezuelan president Hugo Chavez made a vitriolic anti-bush speech at the U.N. calling President Bush "the devil". Since then a Boston city councilor, Jerry McDermott (Allston-Brighton), has called for the sign to be dismantled, due to Citgo's ownership by the Venezuelan government.

Business Etiquette

Business: English is becoming more widely spoken in business circles, particularly at executive level. Nevertheless, Spanish is essential for most business discussions. Appointments are necessary and a business visitor should be punctual. Office hours: Mon-Fri 0800-1800 with a long midday break.

Fashion is very important to Venezuelan women. Women should pack their best business clothes and one cocktail dress. Dress for men is conservative – dark business suits of tropical weight wool

The older generation wants to get to know you personally first, rather than your company or firm while the younger generation will typically want to relate more to your business dealings or company, rather than to you personally. Avoid dominating the conversation. Venezuelans like to be in control.

It is common to exchange visiting cards. Have business cards printed in English on one side and Spanish on the other. Be sure your position is clearly indicated and present your card immediately following an introduction. Titles are important and should be included on business cards. Address a person directly by using his or her title only.

When dining, wait until everyone is served before beginning to eat. Unlike lunch, dinner is for socializing, not for business.To indicate you have finished eating, place your utensils in parallel and diagonally across your plate

Nepotism an accepted practice and is considered a good thing, since it implies that employing people one knows and trusts is of primary importance