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Venezuela

Welcome to the price transmission page for Venezuela. This page enables you to look into the country and its crops more specifically to gain an understanding of the level of risk and also, to view its historic warning periods per commodity. Select a time range or a specific date to view the data in more detail.

Venezuela

Historic Warnings per Commodity

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Background information

The Bolivarian Republic of Venezuela possesses the world’s largest oil reserves. The high-income economy is consequently overall dependent on the petroleum sector with exports accounting for more than half of GDP and approximately all exports. Manufacturing heavy industry products, electronics and automobiles are other important industries. The expanding state’s role in the economy, further boosted by falling oil prices, discourages the private sector through expropriations and price controls. GDP contracts annually by more than 5% and inflation is expected to reach 700% in 2016.

Approximately one quarter of the total land area is used for agriculture, mainly as grassland for livestock. Farming accounts for roughly 4% of GDP and every tenth of the total labor force is engaged in farming. Venezuela mainly produces rice, corn, fish, tropical fruit, coffee, pork, and beef, but the overall level of production is not self-sufficient. In terms of demand for cereals for instance, more than half of the consumption needs to be imported.

In the past, Venezuela was able to halve poverty levels and increase school enrollment due to immense social investments mainly based on earnings in the oil industry. This put the country in the high human development category ranking 71 out of 188 countries in the HDI (2014). However, the current contracting economy combined with high inflation led to widespread shortages of basic consumer goods, medical supplies and a higher inequality. For instance, one quarter of the population suffers from obesity contrasting a majority facing food insecurity and lack of clean water. Poverty rates are skyrocketing.