Venezuelan imports jump to highest level in 16 years

A significant expansion of the Venezuelan government s public spending has led to higher consumption, but the country s economy has little capacity to meet increased demand. Consequently, there is no other choice than turning to a historic increase in imports, which has started to put pressure on public accounts.

Imports totaled USD 13.19 billion in the first quarter, a 48.5% hike over the same period in 2011 and the highest level for the first three months of the year since 1997.

Each one-point increase in GDP translated into an 8.6-point growth of imports. Purchases abroad amount to 32.6% of total supply of goods and services in the Venezuelan economy. In the last 10 years, such indicator averaged 26%.

The public sector's imports soared 64% and focused mainly on food items such as milk powder, sugar, rice and corn, among others.

The private sector's imports increased by 41% and included mainly chemicals, machinery for agriculture and oils.