The outlook remains extremely poor for Venezuela's power sector. An overreliance onhydropower leaves the country highly vulnerable to supply short-falls and while investment in new thermalcapacity (which can act as a stable baseload) has been promised, progress on new natural-gas and coalfiredpower plants has been slow. The country does offer enormous growth potential in light of both vastnatural resources to feed thermal power plants and in terms of untapped renewables, however, political andeconomic instability combined with a hostile investment environment mean this potential will remainunrealised.
Latest Updates And Structural Trends
Venezuela's economy will remain in crisis in 2017 due to extremely limited oil exports, spirallinginflation and acute shortages of essential goods and inputs. The BMI Country Risk team is forecasting afourth consecutive year of GDP decline (contracting by 4.7%), despite rising oil revenues.