3. Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg
5. Venezuela - GDP
• The Venezuelan economy is set to
experience another difficult year in 2016
due to low commodity prices and structural
macroeconomic imbalances. The economy
has taken a turn for the worse since
President Nicolás Maduro, in an effort to
tackle an ongoing energy crisis, ordered the
working week for civil servants to be
shortened to two days per week and
announced daily power cuts.
• The measures, which will constrain
economic activity even further, have
unleashed a wave of looting and rioting
across the country. Meanwhile, the political
opposition has stepped up their effort to
end the president’s term by using all the
legal mechanisms at their disposal. The
government has responded by imposing
numerous hurdles and declaring a state of
emergency to thwart any impeachment
attempt.
6. Government Policies
• FDI (Foreign Direct Investment)
• Despite certain attractive features of the country, such as its large oil reserves, the large size of its
domestic market and the richness of its natural resources, FDI inflows into Venezuela have
decreased in the last few years, mainly because of the country's unstable legal system.
• Venezuela's uncertain business climate born of the 'Bolivarian' reforms (infringement of private
property rights, foreign currency controls, increasing regulations, nationalisations, etc.) and the
ineffectiveness of the port system are some of the various hindrances to investment. The new
Government is combining regional and revolutionary politics, without closing its door to foreign
investment, which it needs badly. Still, the 'Bolivarian' socialism pursued by the rather
interventionist Government hinders the increase of FDI flows. In 2014, FDI to Venezuela declined
by USD 6 billion (-88% compared to 2013), falling to under USD 1 billion.
• Inflation rate 500%
• Unemployment 17% and predicted to grow to 21% in 2017
• Debt to GDP close to 50%
• 70% of the economy relies on oil revenue
8. FDI Issues with Venezuela
• http://www.wsj.com/articles/exxon-mobil-awarded-1-4-billion-in-
venezuela-case-1412879396
• World Bank Orders Venezuela To Pay Crystallex $1.4 Billion For Gold
Mine
9. Canada and Venezuela
• In 2009, Canada’s bilateral merchandise trade with Venezuela totalled $1.5 billion, consisting of
$629 million in Canadian exports to, and $908 million in imports from, Venezuela. Both exports and
imports in 2009 were at about the same level as ten years earlier.
• Although Venezuela ranks among Canada’s largest trading partners in Latin America, it is not a significant
export destination, and nor is it a major source of imports for Canada. Venezuela was Canada’s fourth-
largest export destination in Latin America in 2009, but was Canada’s 29th-largest export destination
worldwide. It was Canada’s fifth-largest source of imports in Latin America that year and was the 38th-
largest source of imports worldwide.