Although terrorism has been absent, peacefulness is worsening in Venezuela and there is scant economic freedom, whilst the state faces growing pressure from the US. Inflation remains a key problem and economic momentum is set to moderate, but renewed licences could boost oil production. Although the population is expanding, brain drain is a major challenge, as is a large gender gap. Internet and mobile usage is increasing and a new strategy could improve connectivity, but innovation is weak.

Insight into income, wealth and expenditure of consumers and households is vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

This report assesses the business environment in Venezuela, focusing on the regulatory environment, stability of the financial system, FDI intake, labour market flexibility and skillset, trade openness, mobility infrastructure, ICT adoption and innovative capabilities. Companies can evaluate these factors to understand the strengths and weaknesses of a country’s business environment for better strategic investment decisions.

The report examines the economic landscape of Venezuela and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2024, driven by exports, private consumption and government spending, investments. However, a global economic slowdown, increasing geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

The number of households is set to increase moderately, while the average household size will shrink in Venezuela over 2024-2029. Couples with children will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by single person households. In addition, the share of households living in urban areas is projected to expand to 88.3% by 2029.

The population of Venezuela is predicted to increase by 6.7%, due to changes in net migration and natural change, standing at a total of 30.4 million citizens by 2040. Venezuela’s birth rate is expected to fall between 2024 and 2040. Demographic changes, economic conditions and social trends are all contributing to negative net migration. Mid-Lifers (aged 45-64) will represent the largest portion of the population by 2040.

Ageing, urbanisation and migration continue to be major factors shaping the global population. The number of seniors around the world kept expanding in 2021 and is expected to grow further in the years to 2040. The number of small children is systematically falling globally due to decreasing fertility rates, later marriages and other factors influencing the change in lifestyles. Containment of the pandemic, gradual lift of the restrictions and political unrest encourage greater mobility and migr