Venezuela Economic Indicators Report 2022

Economics
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Economics
VENEZUELA
The table below, Table 1: Venezuela Economic Indicators gives the summary of the economic
statistics for Venezuela for the period between 2015 and 2019.
Table 1: Venezuela Economic Indicators
2014 2015 2016 2017 2018
GDP 482.4 482 400 337 276
GDP per Capita 16054 15909 13018 10832 8768
Inflation Rate 62.17 181 274.00 863 130060
Unemployment Rate 5.5 6.82 7.46 7.42 8.37
Growth Rate -3.9 1.30 -3.90 -6.20 -17.00
(Source: (The World Bank, 2020))
Venezuela is a country of 28.87 million people in the Latin America region (World Population
Review, 2020). The country is currently facing an economic crisis with the inflation rates
increasing rapidly over the last five years from 62.17% to 130 060%. The unemployment rate
has similarly shown a general increasing trend over the same period, with the latest figures for
the year 2018 being 8.37%. This represented a steep rise from 7.42% in the year 2017, as
compared to the rise from 2016 to 2017. Consequently, the GDP (shown in Figure 1: Venezuela
GDP Trend below), GDP per capita and Growth Rates have been decreasing signaling a decline
in the development in the country. From the plot we notice, that despite a slight initial drop for
2014-2015, a rapid fall followed from $482 billion in 2015 to $276 billion in the recent figures
for 2018. These poor performing indicators have made difficult for the hospitality industry to
operate effectively due to the high cost of doing business.
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Economics
2014 2015 2016 2017 2018
0
100
200
300
400
500
600
482.4 482
400
337
276
Venezuela GDP
Years
GDP (Billions USD)
Figure 1: Venezuela GDP Trend
The table below, Table 2: Venezuela Tourism Related Indicators shows the tourism statistics for
Venezuela, with free visa for tourists notable, for up to 90 days, with a departure tax on leaving
the country amounting to $51.16. The GST (Goods and Services Tax), Venezuela’s equivalent of
the VAT (Value Added Tax) is 16% with the service tax standing at 34%. Despite the high
figures for other charges, the extended stay period of 90 days is a key incentive for tourism in
Venezuela.
Table 2: Venezuela Tourism Related Indicators
GST (VAT) 16
Service Tax 34
Visa Fees Free
Departure Tax (Exit
Tax)
51.16
(Source: (The World Bank, 2020))
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Economics
NEW CALEDONIA
The table below, Table 3: New Caledonia Economic Indicators gives the summary of the
economic statistics for New Caledonia for the period between 2014 and 2019.
Table 3: New Caledonia Economic Indicators
2014 2015 2016 2017 2018
GDP 10.5 9.2 9.4 10 9.9
GDP per Capita 39488.5 34048.9 34321.6 35906.6 34851.7
9
Inflation Rate 0.2 0.6 0.6 1.4 1.76
Unemployment Rate 14 14.6 14.6 14.8 13.62
Growth Rate 3.4 3.60 3.00 2.50 1.00
(Source: (The World Bank, 2020))
New Caledonia is a French pacific territory of a population of 284 060 (World Population
Review, 2020). New Caledonia is currently at a stable economic state, with the tourism sector
contributing 15% to the GDP. The inflation rate showed a general rising trend, with the latest
figures for 2018 being 1.76%, up from 0.2% in 2014. GDP (shown in Figure 2: New Caledonia
GDP Trend below) and GDP per capita had initial large decrease in 2014-2015 followed by a
consistent increasing trend before a slight drop in 2018 to $9.9 billion. The shifts in the GDP are
however marginal and about the $9.5 billion figure, indicating a relatively stable economy.
Unemployment rates in the country have shown an initial increasing trend, before a slight drop in
2018 to 13.62%, another indicator that the economy of New Caledonia is performing well. The
Growth rate however, showed a decreasing trend after an initial jump in 2014-2015, indicating a
slowing down of development in New Caledonia. This is evident from the growth rate of 3.6% in
2015 dropping to 1% in 2018. The relatively stable economic state of New Caledonia has seen
the hospitality industry performing well due to a conducive economic environment.
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Economics
2014 2015 2016 2017 2018
8.5
9
9.5
10
10.5
11
10.5
9.2
9.4
10 9.9
New Caledonia GDP
Years
GDP (Billions USD)
Figure 2: New Caledonia GDP Trend
The table below, Table 4: New Caledonia Tourism Related Indicators shows the tourism
statistics for New Caledonia, with free visa for tourists notable, for up to 30 days, with the
departure tax paid on leaving standing at $14.29. The GST/VAT packaged as the TGC (Tax on
Consumption) averages 19.6% for the included tax packages in New Caledonia, with a range
from as low as 3% to as high as 22%. The service tax, which initially did not exist in New
Caledonia, currently stands at 5%, a value that is significantly low.
Table 4: New Caledonia Tourism Related Indicators
GST (VAT) 19.6
Service Tax 5
Tourist Visa Fees Free
Departure Tax (Exit
Tax)
14.29
(Source: (The World Bank, 2020))
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Economics
RECOMMENDATION
Both New Caledonia and Venezuela have free visas for tourists, depending on country of origin,
with the one for Venezuela lasting longer than that of New Caledonia. However, the economy in
New Caledonia is more stable with a better outlook as compared to the Venezuelan economy.
New Caledonia also has additional incentives that include subsidies for new businesses and tax
exemptions in the tourism sector, making it better location for investment as compared to
Venezuela.
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Economics
References
The World Bank 2020, DataBank, viewed 10 April 2020
<http://databank.worldbank.org/>
World Population Review 2020, Population, viewed 10 April 2020
<http://worldpopulationreview.com>
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