ami, New Orleans,
New York, San Francisco, and San Juan (Puerto Rico)

Diplomatic representation from the US:
chief of mission: Ambassador John Francis MAISTO
embassy: Calle F con Calle Suapure, Colinas de Valle Arriba, Caracas
1060
mailing address: P. O. Box 62291, Caracas 1060-A; APO AA 34037

Flag description: three equal horizontal bands of yellow (top),
blue, and red with the coat of arms on the hoist side of the yellow
band and an arc of seven white five-pointed stars centered in the
blue band

Economy

Economy--overview: The petroleum sector dominates the economy,
accounting for roughly a third of GDP, around 80% of export
earnings, and more than half of government operating revenues. As a
result, the steep downturn in international oil prices has had a
severe impact on the economy; fiscal cuts spurred by the loss of
revenues, high interest rates, and the sharp downturn in export
earnings drove the economy into recession in 1998. The recession
continued into 1999 with oil prices forecast to stay relatively low,
but rising. Although the government has pursued moderate austerity
measures to address the downturn in revenues, Venezuela's ongoing
reform program has largely stalled. Pressure on the
bolivar--overvalued by as much as 40%--was also significant through
much of 1998, increasing the probability of an adjustment of the
currency in 1999. Newly elected President Hugo CHAVEZ will be hard
pressed to address Venezuela's many economic ills. He has promised
to strike a balance between reforms designed to address the
structural deformities of the economy and addressing declining
living standards. CHAVEZ has sought to play down the populism that
marked his political campaign for the presidency in an effort to
allay investor concerns. The wide range of viewpoints represented on
CHAVEZ's economic team is likely to make rapid implementation of a
coherent policy difficult.

GDP: purchasing power parity--$194.5 billion (1998 est.)

GDP--real growth rate: -0.9% (1998 est.)

GDP--per capita: purchasing power parity?$8,500 (1998 est.)

GDP--composition by sector:
agriculture: 4%
industry: 63%
services: 33% (1997 est.)

Population below poverty line: 31.3% (1989 est.)

Household income or consumption by percentage share:
lowest 10%: 1.5%
highest 10%: 35.6% (1995)

Inflation rate (consumer prices): 29.9% (1998)

Labor force: 9.2 mil