Venezuela Economy 6-20-25

The estimated population of Venezuela in mid-2025 is 28,516,896. Venezuela's nominal GDP for 2025 is projected to be $108.51 billion. Venezuela's nominal GDP per capita for 2025 is projected to be $4,068.09. In 2025, Venezuela's government debt is projected to reach 135% of its GDP. In 2025, Venezuela's unemployment rate is projected to be around 5.5% 

In 2025, Venezuela is experiencing a severe inflation crisis, with prices increasing significantly. Official sources report an annual inflation rate of 136%. Some reports indicate even higher figures, with one suggesting a 180% to 200% 

In 2025, Venezuela's primary trading partners include the United States, China, Spain, and Brazil. The United States is a significant partner both for Venezuelan exports and imports, though trade balance fluctuates. China is a key importer of Venezuelan crude oil and also a major source of imports for Venezuela. Spain and Brazil also feature prominently in Venezuela's trade relationships, both as export destinations and import sources. 

Here's a more detailed look:

Key Trading Partners:

United States: The US is a major destination for Venezuelan exports, particularly crude oil. However, the trade balance fluctuates, with the US sometimes importing more from Venezuela than it exports. 

China: China is a major importer of Venezuelan crude oil and also a key source of imports for Venezuela. 

Spain: Spain is another significant export market for Venezuela, particularly for crude petroleum. 

Brazil: Brazil is also among the top destinations for Venezuelan exports, and a key source for imports. 

Other Notable Partners:

·       India: India is also a significant importer of Venezuelan crude oil. 

·       Russia: Russia is another important partner, although their trade relationship is influenced by broader geopolitical factors. 

·       Other South American Countries: Venezuela also engages in trade with other Latin American countries through organizations like the Latin American Integration Association (LAIA). 

Factors Influencing Trade:

·       Oil Dependence:

Venezuela's economy is heavily reliant on oil exports, making its trade relationships largely dependent on the global oil market and demand from importing countries. 

·       Geopolitical Factors:

Political relationships and sanctions can significantly impact trade flows. 

·       Economic Conditions:

Venezuela's internal economic situation, including inflation and GDP growth, also influences its import and export activities. 

·       Trade Agreements:

Agreements like LAIA facilitate smoother trade flows between Venezuela and other countries in the region. 

Major Export Partners:

·       United States: In 2023, the United States was the leading destination for Venezuelan exports, including a significant amount of crude petroleum. In April 2025, the US imported $393M worth of goods from Venezuela.

·       China: In 2023, China was a major export partner for Venezuela, and remains a significant buyer of Venezuelan crude petroleum, iron ore, and petroleum coke.

·       Spain: Spain was a key export destination for Venezuela in 2023, and saw a significant increase in crude petroleum imports from Venezuela in March 2025.

·       Brazil: Brazil was also a significant export partner in 2023, importing a variety of goods.

·       Turkey: Turkey is another important export destination for Venezuelan products. 

Major Import Partners:

·       China: China is the primary origin of Venezuela's imports, including motorcycles, rubber tires, and air conditioners.

·       United States: The United States is another major import partner, supplying Venezuela with goods like refined petroleum, soybean meal, and corn.

·       Brazil: Brazil is a significant import origin for Venezuela.

·       Colombia: Colombia is another notable source of imports for Venezuela.

·       Turkey: Turkey is also an important import partner. 

Key Export Products:

·       Crude Petroleum: Crude petroleum remains the dominant Venezuelan export, with variations like Heavy Crude Oil and Extra-heavy Crude Oil being particularly important.

·       Petroleum Coke: This is another significant export product for Venezuela.

·       Scrap Iron: Venezuela exports a notable amount of scrap iron.

·       Other Exports: Venezuela also exports acyclic alcohol derivatives and nitrogenous fertilizers, among other products. 

Key Import Products:

·       Refined Petroleum: Venezuela imports a substantial amount of refined petroleum.

·       Soybean Meal: Soybean meal is a key import for Venezuela.

·       Corn: Corn is also imported in significant quantities.

·       Other Imports: Venezuela imports various other goods, including broadcasting equipment and cars. 

Trade Relations and Agreements:

·       Bilateral Investment Treaty with China: Venezuela ratified a bilateral investment treaty with China in November 2024, aiming to attract Chinese investment and bolster economic ties.

·       Cooperation with Russia and China: Venezuela is increasing cooperation with countries like Russia and China to navigate economic challenges and sanctions.

·       Regional Agreements: Venezuela is part of regional trade agreements like the Latin American Integration Association (LAIA). 

Note: Trade figures and partner importance can fluctuate based on global economic conditions, political developments, and trade policies. For example, trade between Venezuela and the United States saw significant changes in early 2025. Additionally, Venezuela's exports to China decreased between March 2024 and March 2025. 

In 2025, Venezuela's oil production is expected to be around 1.031 million barrels per day (bpd) in January, and 1.025 million bpd in February. April saw a production of 1.051 million bpd.

Norb Leahy, Dunwoody GA Tea Party Leader