MSG159G/01E VENEZUELA-TRADE: Record Exports Fail to Reach Predicted Highs

• by IPS Correspondents (caracas)
• Wednesday, December 14, 1994
• Inter Press Service

CARACAS, Dic 14 (IPS) - Income from Venezuela's non-traditional 1994 exports broke records, but failed to reach foreseen levels, and lost momentum in the second half of the year.

According to the Central Statistics and Informatics Office, exports of goods other than petroleum and iron products totalled 3.6 billion dollars between January and November - 16.1 percent more than the same period in 1993.

However, 21 percent growth in the first half of the year led Finance Minister Julio Sosa and other officials to predict a year-end total of more than four billion dollars in the sector.

Last year, non-traditional exports brought in 3.4 billion dollars, a 23 percent increase over 1992 income.

The non-traditional sector was unexpectedly affected by the 80 percent devaluation of the national currency in 1994, a severe recession and price and exchange controls imposed in June.

Analysts pointed to the difficulty in replacing raw materials when dollars are scarce in a foreign currency market nearly shut down for three months.

However, they added that some companies may have reported less than their actual sales, as the exchange controls demand that exporters nationalise a high percentage of their profits.

"Otherwise, there is no way to explain how exports fell in the second half of the year, when all the factors for expansion were there," said a former leader in the sector, who requested anonymity.

Petroleum sales for the year were similar to 1993 levels of 10 billion dollars, while iron brought in some 180 million. With less than 7.5 billion dollars in imports, the South American nation is looking forward to a significant trade surplus.

Colombia consolidated its position as the leading consumer of non-traditional Venezuelan exports, purchasing more than 24 percent of the total. Other leading importers include the United States, Great Britain, Mexico, Japan and the Netherlands.

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