Venezuela
- Author: Economic Commission for Latin America and the Caribbean
- Main Title: Economic Survey of Latin America and the Caribbean 1985 , pp 629-660
- Publication Date: February 1985
- DOI: https://doi.org/10.18356/9789210583336c021
- Language: English
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For the economy of Venezuela, the year 1985 represented the continuation of the adjustment which had been started two years previously to restore external and internal macro-equilibria. The policy pursued —renegotiation of the external debt and exchange rate devaluation, on the one hand, and stabilization of public finances through strict monetary and fiscal control, on the other, yielded very positive results in the external sector. Thus, the balance-of-payments equilibrium was very quickly restored and considerable increases were even obtained in the net international reserves. Likewise, in 1985 the difficult international conditions were overcome and considerable surpluses were maintained in external operations. Consequently, despite the significant decline in sales of petroleum —which account for 90% of Venezuela's exports— the trade surplus was maintained above the level of US$6 billion (see table 1 and figure 1). The increase in net payments of interest on the external debt led to a reduction of the current account surplus but was almost completely offset by the decline in the capital account deficit. As a result, the net international reserves increased by about US$1.7 billion for the second consecutive year.
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