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• GDP: US$226.9 billion (2007).
• Main imports: Machinery and transport equipment, manufactured goods and construction materials.
• Main exports: Petroleum, aluminium, steel, chemical products, agricultural products.
• Main trade partners: USA, Colombia, Brazil, Mexico, China.
• Main imports: Machinery and transport equipment, manufactured goods and construction materials.
• Main exports: Petroleum, aluminium, steel, chemical products, agricultural products.
• Main trade partners: USA, Colombia, Brazil, Mexico, China.
Economy
Venezuela was a primarily agricultural country until the discovery of oil in the 1920s. A prominent founding member of the Organisation of Petroleum Exporting Countries (OPEC), the country ranks fifth in the world in oil reserves, and it is among the world's top 10 oil exporting nations. The resource provides 90% of export earnings, half of government revenues and approximately a quarter of the country's GDP (in contrast, agriculture comprises less than 4% of GDP). Overdependence on oil revenues, however, has left Venezuela vulnerable to world price fluctuations.
Following an overwhelming electoral victory in December 2006, President Hugo Chávez moved to nationalise petroleum and other companies, somewhat ruffling foreign investors. Despite Chávez's vociferous denunciation of his American counterpart, George W Bush, the US remains a major trading partner, accounting for more than half of the country's exports (mostly oil).
Buoyed by major government investments and increased access to credit, consumer spending jumped substantially in 2007, though at the expense of a 20% rise in inflation. In an effort to boost confidence in the currency, in 2008 the government introduced the Bolívar Fuerte, slashing three zeroes so that a beer now costs about 1 Bolívar instead of 1,000.
Following an overwhelming electoral victory in December 2006, President Hugo Chávez moved to nationalise petroleum and other companies, somewhat ruffling foreign investors. Despite Chávez's vociferous denunciation of his American counterpart, George W Bush, the US remains a major trading partner, accounting for more than half of the country's exports (mostly oil).
Buoyed by major government investments and increased access to credit, consumer spending jumped substantially in 2007, though at the expense of a 20% rise in inflation. In an effort to boost confidence in the currency, in 2008 the government introduced the Bolívar Fuerte, slashing three zeroes so that a beer now costs about 1 Bolívar instead of 1,000.
Business Etiquette
Although Venezuelan businesses are generally up to speed on communications technology, the personal touch remains essential, and some socializing should supplement your e-mail and telephone exchanges. Appointments are necessary and business visitors should be punctual, even though their Venezuelan counterparts may show up a little late. At introductions, a handshake is customary and it is common to exchange business cards. Although English is becoming more widely spoken in business circles, particularly at the executive level, Spanish is essential for most negotiations.
Office hours: Mon-Fri 0800-1700 with a long midday break.
Office hours: Mon-Fri 0800-1700 with a long midday break.
Conferences & Conventions
Larger hotels have facilities. For further information, contact the Buró de Conveciones y Visitantes de Venezuela (conventions bureau) (website: www.burodevenezuela.com).
Business Contacts
Consejo Nacional de Promoción de Invensiones, CONAPRI (National Council for Investment Promotion)
Torre Forum, Planta Baja, Oficina LC-A, Calle Guaicaipuro, El Rosal, Caracas 1060, Venezuela
Tel: (212) 951 6507.
Website: www.conapri.org
Federación Venezolana de Cámaras y Asociaciones de Comercio y Producción, FEDECAMARAS (Federation of Chambers of Commerce and Industry)
Apartado 2568, Edificio Fedecámaras, Pent-House 2, Avenida El Empalme, El Bosque, Caracas, Venezuela
Tel: (212) 731 1711.
Website: www.fedecamaras.org.ve
Torre Forum, Planta Baja, Oficina LC-A, Calle Guaicaipuro, El Rosal, Caracas 1060, Venezuela
Tel: (212) 951 6507.
Website: www.conapri.org
Federación Venezolana de Cámaras y Asociaciones de Comercio y Producción, FEDECAMARAS (Federation of Chambers of Commerce and Industry)
Apartado 2568, Edificio Fedecámaras, Pent-House 2, Avenida El Empalme, El Bosque, Caracas, Venezuela
Tel: (212) 731 1711.
Website: www.fedecamaras.org.ve