Economy :: VENEZUELA

Population: 29.8 million

GDP (purchasing power parity) : $402.1 billion (2012 est.) country comparison to the world: 34 $380.2 billion (2011 est.) GDP - per capita (PPP) : $13,200 (2012 est.) GDP - composition by sector : agriculture: 3.7% industry: 35.3% services: 61.1% (2012 est.) Labor force : 13.7 million (2012 est.) country comparison to the world: 41 Labor force - by occupation : agriculture: 7.3% industry: 21.8% services: 70.9% (4th quarter, 2011 est.) Unemployment rate : 8% (2012 est.) country comparison to the world: 97 8.2% (2011 est.) Investment (gross fixed) : 19.3% of GDP (2012 est.) Exports : $96.9 billion (2012 est.) Imports : $56.69 billion (2012 est.) Inflation rate (consumer prices) : 20.9% (2012 est.) Stock of direct foreign investment - at home :

$49.6 billion (31 December 2012 est.) country comparison to the world: 56 $45.2 billion (31 December 2011 est.) Stock of direct foreign investment - abroad : $21.95 billion (31 December 2012 est.) country comparison to the world: 43 $19.81 billion (31 December 2011 est.) Industries : petroleum, construction materials, food processing, textiles; iron ore mining, steel, aluminum; motor vehicle assembly, chemical products, paper products Venezuela remains highly dependent on oil revenues, which account for roughly 95% of export earnings, about 45% of federal budget revenues, and around 12% of GDP. Fueled by high oil prices, record government spending helped to boost GDP growth by 4.2% in 2011, after a sharp drop in oil prices caused an economic contraction in 2009-10. Government spending, minimum wage hikes, and improved access to domestic credit created an increase in consumption which combined with supply problems to cause higher inflation - roughly 26% in 2011 and 21% in 2012. President Hugo CHAVEZ's efforts to increase the government's control of the economy by nationalizing firms in the agribusiness, financial, construction, oil, and steel sectors have hurt the private investment environment, reduced productive capacity, and slowed non-petroleum exports. In the first half of 2010 Venezuela faced the prospect of lengthy nationwide blackouts when its main hydroelectric power plant which provides more than 35% of the country's electricity - nearly shut down. In May 2010, CHAVEZ closed the unofficial foreign exchange market - the "parallel market" - in an effort to stem inflation and slow the currency's depreciation. In June 2010, the government created the "Transaction System for Foreign Currency Denominated Securities" to replace the "parallel" market. In December 2010, CHAVEZ eliminated the dual exchange rate system and unified the exchange rate at 4.3 bolivars per dollar. In January 2011, CHAVEZ announced the second devaluation of the bolivar within twelve months. In December 2010, the National Assembly passed a package of five organic laws designed to complete the transformation of the Venezuelan economy in line with CHAVEZ's vision of 21st century socialism. In 2012, Venezuela continued to wrestle with a housing crisis, high inflation, an electricity crisis, and rolling food and goods shortages - all of which were fallout from the government's unorthodox economic policies. The budget deficit for the entire government reached 17% of GDP in 2012, and public debt as a percent of GDP climbed steeply to 49%, despite record oil prices.
In 1999, Hugo Chvez won the presidency, vanquished the traditional party system, and launched his Bolivarian Revolution aimed at Socialism for the 21st Century. Chvez styles himself the leader of Latin Americas antifree market forces and has made alliances with China, Cuba, Russia, and rogue states like Iran. He has persecuted his political adversaries and critics, restricted media freedom, undermined the rule of law and property rights, militarized the government, and tried to destabilize neighboring Colombia. The national assembly, which he controls, passed a 2009 constitutional amendment allowing him to seek yet another presidential term, and he won re-election in October 2012. Venezuela has Latin Americas highest inflation rate (currently nearly 30 percent); chronic electricity, food, and housing shortages; and skyrocketing crime rates.

RULE OF LAW

The government expropriates land and other private holdings across the economy arbitrarily and without compensation. Corruption, exacerbated by cronyism and nepotism, is rampant at all level of government.

Angola

Angola's high growth rate in recent years was driven by high international prices for its oil. Angola became a member of OPEC in late 2006 and its current assigned a production quota of 1.65 million barrels a day (bbl/day). Oil production and its supporting activities contribute about 85% of GDP. Diamond exports contribute an additional 5%. Subsistence agriculture provides the main livelihood for most of the people, but half of the country's food is still imported. Increased oil production supported growth averaging more than 17% per year from 2004 to 2008. A postwar reconstruction boom and resettlement of displaced persons has led to high rates of growth in construction and agriculture as well. Much of the country's infrastructure is still damaged or undeveloped from the 27- year- long civil war. Land mines left from the war still mar the countryside, even though peace was established after the death of rebel leader Jonas SAVIMBI in February 2002. Since 2005, the government has used billions of dollars in credit lines from China, Brazil, Portugal, Germany, Spain, and the EU to rebuild Angola's public infrastructure. The global recession that started in 2008 temporarily stalled economic growth. Lower prices for oil and diamonds during the global recession slowed GDP growth to 2.4% in 2009, and many construction projects stopped because Luanda accrued $9 billion in arrears to foreign construction companies when government revenue fell in 2008 and 2009. Angola abandoned its currency peg in 2009, and in November 2009 signed onto an IMF Stand- By Arrangement loan of $1.4 billion to rebuild international reserves. Consumer inflation declined from 325% in 2000 to about 10% in 2012. Higher oil prices have helped Angola turn a budget deficit of 8.6% of GDP in 2009 into an surplus of 12% of GDP in 2012. Corruption, especially in the extractive sectors, also is a major challenge. Population: 19.6 million

GDP (purchasing power parity) : $126.2 billion (2012 est.) country comparison to the world: 66 $118.1 billion (2011 est.) $113.7 billion (2010 est.) GDP - per capita (PPP) : $6,200 (2012 est.) country comparison to the world: 140 $6,000 (2011 est.) $6,000 (2010 est.) GDP - composition by sector : agriculture: 9.6% industry: 65.8% services: 24.6% (2008 est.) Labor force : 8.468 million (2012 est.) country comparison to the world: 57

Labor force - by occupation : agriculture: 85% industry and services: 15% (2003 est.) Unemployment rate : NA Investment (gross fixed) : 13.3% of GDP (2012 est.) Inflation rate (consumer prices) : 10.3% (2012 est.) country comparison to the world: 199 13.5% (2011 est.) Industries : petroleum; diamonds, iron ore, phosphates, feldspar, bauxite, uranium, and gold; cement; basic metal products; fish processing; food processing, brewing, tobacco products, sugar; textiles; ship repair Exports : $71.95 billion (2012 est.) country comparison to the world: 50 $65.8 billion (2011 est.)

Imports:
$22.32 billion (2012 est.) country comparison to the world: 74 $19.75 billion (2011 est.)

Stock of direct foreign investment - at home:

$115.5 billion (31 December 2012 est.) country comparison to the world: 36 $101.9 billion (31 December 2011 est.) Stock of direct foreign investment - abroad : $8.196 billion (31 December 2012 est.) country comparison to the world: 54 $6.346 billion (31 December 2011 est.)

Corruption is widespread among government officials at all levels. Investigations and prosecutions of misconduct by government officials are rare.