Future Outlook

| Venezuela's Economy | | Pre-Chavez Economy | Chavez Economy | Petroleum Industry |

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"The Venezuelan economy is extremely dependent on oil. It should have diversified a long time ago. Instead, what the current government has done is depend on oil even more than ever before. In the past, when oil prices were high, the country enjoyed a bonanza, but nowadays unemployment is around 17%. It's alarming to see how apprehensive Venezuelans are."~Rafael Belloso Chacín University in Venezuela

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• The future of Venezuela's Economy depends on many different aspects. Volatile leadership can hurt the economy by straining foriegn markets and isolating Venezuela's economy. Oil prices will also have a great effect on the economy. If the prices continue to increase, the Venezuelan economy will experience significant growth.
• Venezuelan President Hugo Chavez put forth a proposal in Caracas on Oct. 1 saying that OPEC's price band of $22 to $28 per barrel should be raised to between $25 and $32 a barrel.
• But the oil markets barely reacted to Chavez's call for a higher OPEC price band, and major OPEC producers like Saudi Arabia simply ignored Chavez's suggestion. The markets clearly no longer view Chavez as having much influence on oil prices as long as he doesn't completely suspend Venezuelan oil production. Chavez will not do this because he needs oil revenues to survive in power.

[[1]|Future GDP]]

File:VE Proven Crude Oil Reserves.png

History and Venezuela's BOOM! | Venezuela's Economy Today | Future Outlook