Economy of Venezuela From Wikipedia, the free encyclopedia The economy of Venezuela is largely based on the petroleum sector and manufacturing.[14] Revenue from petroleum exports accounts for more than 50% of the country's GDP and roughly 95% of total exports. Venezuela is the fifth largest member of OPEC by oil production. From the 1950s to the early 1980s the Venezuelan economy experienced a steady growth that attracted many immigrants, with the nation enjoying the highest standard of living in Latin America. During the collapse of oil prices in the 1980s the economy contracted, and inflation skyrocketed to reach peaks of 84% in 1989 and 99% in 1996, three years prior to Hugo Chávez taking office. With high oil prices and rising government expenditures, Venezuela's economy grew by 9% in 2007. Manufacturing contributed 17% of GDP in 2006. Venezuela manufactures and exports heavy industry products such as steel, aluminium and cement, with production concentrated around Ciudad Guayana, near the Guri Dam, one of the largest in the world and the provider of about three-quarters of Venezuela's electricity. Other notable manufacturing includes electronics and automobiles, as well as beverages, and foodstuffs. Agriculture in Venezuela accounts for approximately 3% of GDP, 10% of the labor force, and at least one-fourth of Venezuela's land area. Venezuela exports rice, corn, fish, tropical fruit, coffee, pork, and beef. The country is not self-sufficient in most areas of agriculture. The United States is Venezuela's most important trading partner. U.S. exports to Venezuela include machinery, agricultural products, medical instruments, and cars. Venezuela is one of the top four suppliers of foreign oil to the United States. About 500 U.S. companies are represented in Venezuela.[14] According to Central Bank of Venezuela, the government received from 1998 to 2008 around 325 billion USD through oil production and export in general,[15] and according to the International Energy Agency, to June 2010 has production of 2.2 million barrels per day, 800,000 of which go to the United States of America.[16] Since Hugo Chávez imposed stringent currency controls in 2003 in an attempt to prevent capital flight,[17] there have been a series of currency devaluations, disrupting the economy.[18] Price controls, expropriation, and other government policies have caused severe shortages of food and other goods, including medical supplies.[19] Venezuela has one of the highest inflation rates in the world averaging 29.1% in 2010, according to the CIA world fact book.[20] http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CCUQFjAB&url=http%3A%2F%2Fen.wikipedia.org%2Fwiki%2FEconomy_of_Venezuela&ei=iQY1VPvANIz9yQTtnIJI&usg=AFQjCNHy2tZA3grD2Qf6mbfAdrrBhI6bxg&bvm=bv.76943099,d.eXY&cad=rja
