Venezuelan economy has always had contradictions and distortions that
eventually need to be resolved and cause a lot of pain, grief and damage n the
popeulation. Irresponsible Governments use oil money to create artificialities
that eventually blow up in their faces as the strain on the economy becomes simply
too much. Here are some of the more significant ones in 2005, most of which
will likely get worse in 2006:
Venezuelan economy grew by 9.4% in 2005, but the oil economy grew by only 1.2%.
Venezuelan economy grew by 9.4% in 2005, but the Caracas Stock Market was the
worst performing market in the world of the 79 covered by Bloomberg, down 32.4%
for the year in US$.
in 2005 was 14.4% but the yield on a 91 day Treasury Bolivar note closed the
year at 7.83%.
country received US$ 48.34 billion for its oil exports and only US$ 7.25
billion for non-oil exports, an increase of only 6% for the latter.
country had imports of US$ 25. 17 billion, an increase of 45% over the previous
year and a historical high.
-Venezuela issued over US$ 4.1 billion in new foreign
debt, but purchased over a billion US$ 1 billion in Argentinaís debt.
Government says unemployment is at 8.4%, but 45% of the workforce is part of
the informal economy and not measured.
prices were up 10.2% in 2005, those not undrer control were up 18.1% in 2005.