Economic Overview
Venezuela remains highly dependent on oil revenues, which account for roughly 90% of export earnings, more than 50% of the federal budget revenues, and around 30% of gdp. a nationwide strike between december 2002 and february 2003 had far-reaching economic consequences - real gdp declined by around 9% in 2002 and 8% in 2003 - but economic output since then has recovered strongly. fueled by high oil prices, record government spending helped to boost gdp in 2006 by about 9% and in 2007 by about 8%. this spending, combined with recent minimum wage hikes and improved access to domestic credit, has created a consumption boom but has come at the cost of higher inflation-roughly 20 percent in 2007. imports also have jumped significantly. embolden by his december 2006 reelection, president hugo chavez in 2007 nationalized firms in the petroleum, communications, and electricity sectors, which reduced foreign influence in the economy. although voters in december 2007 rejected chavez's proposed constitutional changes, chavez still has significant control of the economy and has indicated he intends to continue to consolidate and centralize authority over the economy by implementing "21st century socialism."
Environmental Issues
Sewage pollution of lago de valencia; oil and urban pollution of lago de maracaibo; deforestation; soil degradation; urban and industrial pollution, especially along the caribbean coast; threat to the rainforest ecosystem from irresponsible mining operations
Government Type
Federal republic
Population
26,414,816 (july 2008 est.)
Location
Northern south america, bordering the caribbean sea and the north atlantic ocean, between colombia and guyana
Area
Total: 912,050 sq km
land: 882,050 sq km
water: 30,000 sq km
Slightly more than twice the size of california
Country Aliases
Conventional long form: bolivarian republic of venezuela
conventional short form: venezuela
local long form: republica bolivariana de venezuela
local short form: venezuela
Capital
Name: caracas
geographic coordinates: 10 30 n, 66 56 w
time difference: utc-4.5 (half an hour ahead of washington, dc during standard time)
Military Service
18-30 years of age for compulsory and voluntary military service; 30-month conscript service obligation - all citizens 18-50 years old are obligated to register for military service (2008)
International Disputes
Claims all of the area west of the essequibo river in guyana, preventing any discussion of a maritime boundary; guyana has expressed its intention to join barbados in asserting claims before the united nations convention on the law of the sea (unclos) that trinidad and tobago's maritime boundary with venezuela extends into their waters; dispute with colombia over maritime boundary and venezuelan-administered los monjes islands near the gulf of venezuela; colombian-organized illegal narcotics and paramilitary activities penetrate venezuela's shared border region; in 2006, an estimated 139,000 colombians sought protection in 150 communities along the border in venezuela; us, france, and the netherlands recognize venezuela's granting full effect to aves island, thereby claiming a venezuelan eez/continental shelf extending over a large portion of the eastern caribbean sea; dominica, saint kitts and nevis, saint lucia, and saint vincent and the grenadines protest venezuela's full effect claim
Sources: Central Intelligence Agency (CIA)
