March 4, 2005
Turkey and Venezuela in big ascent

(Mercati Finianziari) - "The two countries have been protagonists of the new international economic balance. Turkey, which is candidate to enter the EU, should see a growth of 5% in the next five years, while the development of Venezuela is being led by the oil industry (...)

Venezuela has had in the last two years a strong positive element, the rise of the oil price, which is the biggest resource of the country, but it has also had a strongly negative element, which is the political conflict between President Chávez and the local economic forces. The political crisis has had a very heavy impact on the economy: the strike in late 2002 early 2003 has blocked the country for more than two months and has brought the GDP in negative territory: -9,2% in 2003.

After the strike, however, the oil production has gone back to an average of 3 millions barrels per day. In the first quarter of 2004 the GDP has thus registered a strong expansion (+29,8% compared to the same period of 2003) thanks to the growth in public expense, the flexibility in the monetary exchange control and the rise in the oil production. According to the evaluations of multilateral institutions, at the end of 2004 a growth of 1,8% in the GDP has actually taken place.

Minerals, energy, industries. The most important resource is the petroleum, of which Venezuela is one of the biggest producers in the world (the main concentrations are in Maracaibo, Barinas, Anzoátegui, Monagas, Delta Amacuro, Falcon e Guárico). Good is the production of natural gas, taken from Amana, Maraven, Lechoso and Placer.

However, there are also other minerals: first of all iron (Cerro Bolívar, El Pao, San Isidro), gold (Orinoco), diamonds (high Icabarú), bitumen, amianthus, magnesite, carbon (Naricual, Capiricual), bauxite and phosphates. Very important is the idro-electric potential: big plants are in Guri, on the Caroní, where an artificial lake has been created of 800 kmq, and the new central Macagua as well. A nuclear reactor is working near Caracas, the capital. The industrial sectors more developed are the ones related to the oil. The main firms which refine the crude oil are located in Amuay, Cardón, San Lorenzo, Bajo grande, and Puerto la Cruz, but part of the crude is also refined in Curacao, Aruba and in the Dutch Antilles".