CARACAS, Tuesday August 26, 2008 | Update
The nationalization of foreign companies in strategic sectors
of the Venezuelan economy during the past year have spread
fears among the transnational companies operating in Venezuela
and have made the country unattractive for future foreign
investments, according to experts.
Currently the Venezuelan government controls more than 90
percent of the cement industry as well as most companies in
the electricity, oil and steel sectors and a share of the
telecommunication sector. As a result, foreign companies have
been forced to reduce or sell their interests in Venezuela,
AFP reported.
The increase of government control of economy, which is also
subject to price regulations and exchange controls that reduce
the profitability and competitiveness of foreign firms in
Venezuela, has slowed the pace of foreign investments in the
country, analysts said.
"Foreign investments should be at least 3 percent of Gross
Domestic Product (GDP), about USD 6 billion, and we do not
reach 10 percent of that figure, the Venezuelan economist
Orlando Ochoa told AFP.
11:00 AM. Economy. Based on the official data, more and more families failed to get out of poverty in 2008; the exclusion status of more people moved faster and fewer people are on their way to overcome this situation. According to the data provided by the official National Statistics Institute (INE), last year the poorest homes in the country recorded an average monthly income of USD 401.82, whereas the food basket amounted to 417.77