Venezuela: Basic Industries economic activity of has slowed since 2005

[naaman fletcher]

El Universal: Venezuela's executive office submitted to the Securities & Exchange Commission (SEC) an annual report on the South American country's economic activity in 2009. The document shows that output of the basic industries comprising the Venezuelan Guayana Corporation has declined in the last four years.

The report mirrors the economic situation of Guayana's basic industries between 2005 and 2009. It highlights that iron production, which amounted to 22 million metric tonnes in 2005, fell to 13.8 million metric tonnes in 2009, a drop of 37% in just four years.

Other commodities showed the same behavior. In the case of alumina, Venezuela's production amounted to 1.9 million in 2005, and it declined to 1.3 million in 2009, down 32%. Aluminum output stood at 632,000 tonnes in 2005. It fell to 569,000 tonnes in 2009, a 9% reduction.

The report, which was prepared by the Ministry of Planning & Finance, highlights that in general output has tumbled in 2010 due to the energy crisis.

The package of energy rationing measures implemented by the executive office in the first half forced the shutdown of three furnaces in the Venezuelan steelmaker Siderurgica del Orinoco (Sidor), the closure of two production lines in the state-run aluminum smelter Alcasa, and the temporary shutdown of 360 electrolytic cells at state-run aluminum smelter Venalum.

http://www.vheadline.com/readnews.asp?id=96918

[naaman fletcher]

1. Sounds like the US

Gut domestic manufacturing in favor of Chinese imports paid for with debt.

[bherrera]

3. Not the same

The highlight items are commodities, not finished products. The commodities markets have space for the Venezuelan production, and they should be able to compete. The Chinese don't compete in this sector because they are consuming the commodities, not producing them. I think the problem is caused by the electricity crisis.

[ChangoLoa]

2. We still have no industrial development policy

We still function within the framework of the 1989 IMF reform. No productive linkages seeking, no cluster building, no public development strategy.

Thanks for posting this, interesting numbers