Cablegate: Survey Indicates Private Sector Not Investing Long

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DE RUEHCV #1261 2721519
ZNR UUUUU ZZH
P 291519Z SEP 09
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UNCLAS CARACAS 001261

SENSITIVE
SIPDIS

HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR MKACZMAREK
NSC FOR DRESTREPO AND LROSSELLO
USDOC FOR 4332 MAC/ITA/WH/JLAO

E.O. 12958: N/A
TAGS: ECON VE
SUBJECT: SURVEY INDICATES PRIVATE SECTOR NOT INVESTING LONG
TERM IN VENEZUELA

REF: CARACAS 1104

1. (U) Venezuelan businesspeople are pessimistic about the
current state of the economy, according to a recent survey
conducted by the Venezuelan American Chamber of Commerce of
156 businesses. Of those surveyed, thirty-seven percent do
not plan to invest in Venezuela (in the short, medium or long
term). The survey indicated that twenty-six percent plan to
invest in the short term, thirty percent in the medium term,
and only seven percent plan to invest in the long term. The
survey also demonstrated that fifty-two percent of the
businesses said that their sales fell over the last year and
only thirty percent registered an increase in sales compared
to the previous year. Thirty-one percent of the businesses
have had to reduce their labor force over the last year.

2. (SBU) COMMENT: This data shows the impact of the current
economic crisis on the private sector in Venezuela and puts
the economic contraction into perspective (reftel). Economic
problems compounded by the GBRV's economic policies have led
many businesses to question the future for the private sector
in Venezuela.
DUDDY

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