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COUNTRYPROFILE VENEZUELA

CONTENTS<<COUNTRY>>

IMD World Competitiveness Yearbook 2020, Talent & Digital 2019: summaries

WORLD COMPETITIVENESSRANKING 2020

All data are available from theWorld Competitiveness Online.

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BASIC FACTSCapital

Land area (square km '000) 9122019

Exchange Rate (per $) 45,336.1002019

Population - market size (millions) 27.532019 27

Gross Domestic Product (GDP) (US$ billions) 70.12019 53

GDP (PPP) per capita (US$) 7,3382019 63

Real GDP growth (%) -26.82019 63

Consumer price inflation (%) 19,906.022019 63

Unemployment rate (%) 6.902018 49

Labor force (millions) 16.032018 25

Current account balance (% of GDP) 7.012019 9

Direct investment stocks inward ($bn) 23.12018 58

Direct investment flows inward (% of GDP) 0.552016 55

PEER GROUPS RANKINGSTHE AMERICAS (9 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS TRENDS - OVERALL

VENEZUELAOVERALL PERFORMANCE (63 countries) Rank

Caracas

CHALLENGES IN 2020Strengthen the rule of law: studies qualify the country as governed

by an authoritarian regime, impacting all aspects of life.

National Council to Investment Promotion (CONAPRI)

COMPETITIVENESS LANDSCAPE

61

63 63 63 63

2016 2017 2018 2019 2020

63 63

52

42

6357

15

62 63 63 6356

63

37

52

63 63 62 59 60

Dom

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Inte

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Inte

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Empl

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Pric

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Publ

ic F

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Tax

Polic

y

Inst

itutio

nal F

ram

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k

Busi

ness

Leg

isla

tion

Soci

etal

Fra

mew

ork

Prod

uctiv

ity &

Effi

cien

cy

Labo

r M

arke

t

Fina

nce

Man

agem

ent

Prac

tices

Att

itude

s an

d V

alue

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Basi

c In

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Tech

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gica

l Inf

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Scie

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Hea

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nvir

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Educ

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Economic Performance Government Efficiency Business Efficiency Infrastructure

9 9 9 9 9

2016 2017 2018 2019 2020

2829 29 29 29

2016 2017 2018 2019 2020

• Strengthen the rule of law: studies qualify the country as governed by an authoritarian regime, impacting all aspects of life.

• Liberate the economy: the exchange mechanisms and price controls since 2003 were relaxed in 2019. However, new measures were implemented in fight against Covid-19.

• Solve hyperinflation: the IMF forecasts 15,000% in 2020.• Solve the problem of basic services: in 2020, the fall in oil

prices/production and Covid-19 make access difficult.• Eliminate administrative barriers: simplify procedures.

Provided by:National Council to Investment Promotion (CONAPRI)

IMPROVEMENTSWCY 2019

WCY 2020 DECLINES

WCY 2019

1.2.13 Exports of commercial services (%) 0.51 1.31 4.1.07 Population - growth 1.35

4.4.28 Quality of life 0.67 1.43 1.1.09 Gross fixed capital formation (%) 12.6

2.1.02 Government budget surplus/deficit (%) -31.85 -3.06 4.3.16 Patent applications per capita 0.36

1.1.15 Real GDP growth per capita -19.10 -2.45 2.3.13 Bribery and corruption 0.59

2.4.02 Protectionism 1.30 2.37 4.4.12 Energy intensity 135

2.4.11 Parallel economy 0.78 1.31 1.2.08 Exports of goods ($bn) 33.66

1.4.07 Unemployment rate 19.00 6.90 1.1.14 Real GDP growth -18.0

4.1.05 Management of cities 1.44 2.20 2.1.04 Total general government debt (%) 34.87

3.3.08 Stock markets 1.74 2.49 1.1.21 GDP (PPP) per capita 11,831

2.4.09 State ownership of enterprises 1.81 2.57 1.2.12 Exports of commercial services ($bn) 1.24

3.5.02 Image abroad or branding 1.13 1.60 2.4.05 Capital markets 1.48

4.4.27 Environmental laws 3.70 4.98 4.1.15 Energy infrastructure 0.89

4.4.26 Pollution problems 3.30 4.38 1.2.09 Exports of goods (%) 34.18

2.3.09 Legal and regulatory framework 0.48 0.64 2.4.08 Subsidies 0.59

2.4.03 Public sector contracts 1.21 1.60 3.3.16 Credit 1.70

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

VENEZUELACOMPETITIVENESS EVOLUTION

-4.61

207

16.46

-26.8

50.92

7,338

0.77

0.41

The criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are

determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY 2020

1.20

KEY ATTRACTIVENESS INDICATORSFrom a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key

attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses

to the lowest.

-3.7

0.07

0.20

0.96

0.60

23.46

0.0%2.4%7.3%9.8%12.2%12.2%14.6%14.6%22.0%31.7%48.8%56.1%58.5%61.0%63.4%

0% 10% 20% 30% 40% 50% 60% 70%

Competency of governmentPolicy stability & predictability

Effective legal environmentBusiness-friendly environment

Strong R&D cultureReliable infrastructure

Competitive tax regimeAccess to financing

Dynamism of the economyQuality of corporate governance

Cost competitivenessHigh educational level

Skilled workforceEffective labor relations

Open and positive attitudes

WORLD COMPETITIVENESSDIGITAL RANKING 2019

All data are available from theWorld Competitiveness Online.

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Alpha AlphaLabelBeta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

6.5 4 4 2 28.5 4 4 2 2

10.5 4 4 2 2

2015 2016 2017 2018 2019

61 61 63 63 63

54 57 63 63 63

61 61 63 63 63

60 59 63 63 63

OVERALL

Future readiness

COMPETITIVENESS & DIGITAL RANKINGS

PEER GROUPS RANKINGS

THE AMERICAS (9 countries) POPULATIONS > 20 MILLION (29 countries)

Knowledge

Technology

DIGITAL TRENDS - OVERALL

VENEZUELA

OVERALL PERFORMANCE (63 countries)

OVERALL & FACTORS - 5 years

61 61

63 63 63

61 61

63 63 63

2015 2016 2017 2018 2019

Digital

Competitiveness

9 9 9 9 9

2015 2016 2017 2018 2019

28 2829 29 29

2015 2016 2017 2018 2019

63 63 56 51

63 63 63 6363

63 63 49 63

Knowledge Talent Training & education Scientific concentration

Technology Regulatory framework Capital Technological framework

Future readiness Adaptive attitudes Business agility IT integrationThe direction of the triangle indicates the performance change from the last year: improved or stabledeclined

Overall Factors Sub-Factors

N.B. This graph provides only a comparison of the country’s performance in the two rankings.

u Overall top strengths

w Overall top weaknesses

Subfactors 2015 2016 2017 2018 201961 61 63 63 63

44 39 62 60 56

33 47 50 22 51

Talent Rank Rank Rank

Educational assessment PISA - Math - 52 63 International experience 60 - - Foreign highly-skilled personnel 63 - u 1 Management of cities 63 - 37w Digital/Technological skills 63 - - Net flow of international students - - 56 54

Subfactors 2015 2016 2017 2018 201961 61 63 63 63

61 61 63 63 63

57 59 62 63 63

Regulatory framework Rank Rank Rank

w Starting a business 63 50 w 63 Enforcing contracts 60 63 63 Immigration laws 52 63 61 Development and application of technology63 w 63 48 Scientific research legislation 63 63 63 Intellectual property rights 63 63 w 63

Subfactors 2015 2016 2017 2018 201957 56 62 63 63

52 52 49 51 49

60 61 63 63 63

Adaptive attitudes Rank Rank Rank

E-Participation 61 u 15 60 Internet retailing 52 57 63 Tablet possession 52 u 23 62 Smartphone possession 61 44 62 Attitudes toward globalization 53 62

TECHNOLOGY

Technological framework

Capital Technological framework

Scientific concentration

Training & education Scientific concentration

Talent

Robots in Education and R&D

FUTURE READINESS

IT integration

Business agility IT integration

FACTORS BREAKDOWN - STRENGTHS AND WEAKNESSES

VENEZUELA

Opportunities and threats E-GovernmentWorld robots distribution Public-private partnerships

Total expenditure on R&D (%)Total public expenditure on education Total R&D personnel per capita

Training & education

Adaptive attitudes

Business agility

Venture capital Internet bandwidth speedInvestment in Telecommunications High-tech exports (%)

Regulatory framework

Capital

IT & media stock market capitalization Communications technologyFunding for technological development Mobile Broadband subscribersBanking and financial services Wireless broadbandCountry credit rating Internet users

Higher education achievement Female researchersPupil-teacher ratio (tertiary education) R&D productivity by publicationGraduates in Sciences Scientific and technical employmentWomen with degrees High-tech patent grants

Employee training

KNOWLEDGE

Agility of companies Cyber securityUse of big data and analytics Sofware piracyKnowledge transfer

WORLD TALENTRANKING 2019

All data are available from theWorld Competitiveness Online.

Visit our eShop

Alpha AlphaLabel Beta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

Value

- % - 14.8 % 51 - US$ - - ratio -u 7.90 ratio 4 4.41 Survey [0..10] 43 5.07 Survey [0..10] 52 38.85 % 53w 0.63 Survey [0..10] 63

Value

- index -u 7.15 Survey [0..10] 26 3.59 Survey [0..10] 63 1.62 Survey [0..10] 63w 0.67 Survey [0..10] 63w 0.93 Survey [0..10] 63 - US$ - 23,610 US$ 61u 0.98 % 2w 0.42 Survey [0..10] 63 17.46 micrograms 38

Value

0.00 % 55 3.22 Survey [0..10] 59 4.15 Survey [0..10] 61 4.23 Survey [0..10] 60w 2.81 Survey [0..10] 63 2.11 Survey [0..10] 63 - % - 3.63 Survey [0..10] 60 4.52 Survey [0..10] 55 3.41 Survey [0..10] 60 - number - - Average -

Investment & Development 2019 Rank

Health infrastructure meets the needs of society

2019 Rank

Total public expenditure on education Percentage of GDP

Pupil-teacher ratio (secondary education)Apprenticeships are sufficiently implemented

Readiness 2019 Rank

Educational assessment - PISA PISA survey of 15-year olds

Appeal

Exposure to particle pollution Mean population exposure to PM2.5, Micrograms per cubic metre

is readily available

Labor force growth Percentage change

Skilled labor

Management education meets the needs of the business community

Language skills are meeting the needs of enterprises

Student mobility inbound Foreign tertiary-level students per 1000 inhabitants

Primary and secondary education meets the needs of a competitive economy

Graduates in Sciences % of graduates in ICT, Engineering, Math & Natural Sciences

University education meets the needs of a competitive economy

Finance skills are readily available

International experience of senior managers is generally significant

Competent senior managers are readily available

Justice is fairly administered

Remuneration in services professions Gross annual income including supplements such as bonuses, US$

Remuneration of management Total base salary plus bonuses and long-term incentives, US$

Effective personal income tax rate Percentage of an income equal to GDP per capita

Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy

Quality of life is high

Foreign highly-skilled personnel are attracted to your country's business environment

Cost-of-living index Index of a basket of goods & services in the main city, including housing (New York City = 100)

Attracting and retaining talents is a priority in companies

Worker motivation in companies is high

Gov. expenditure on education per student Percentage of GDP per capita (secondary education)

Total public exp. on education per student

VENEZUELA

Spending per enrolled pupil/student, all levels

Pupil-teacher ratio (primary education) Ratio of students to teaching staff

Ratio of students to teaching staff

Employee training is a high priority in companies

Female labor force Percentage of total labor force

IMD World Talent Ranking 2019

OVERALL PERFORMANCE (63 countries)

58

61

63 6362

43

46

4948 48

61 61

63 6362

53

61

63 63

61

2015 2016 2017 2018 2019

Overall

Investment &Development

Appeal

Readiness

48

6262

61

Investment & Development

Appeal

Readiness

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

2020

IMD WORLDCOMPETITIVENESSYEARBOOK

IMD

Wor

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ompe

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Year

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