While the Venezuelan economy has soared for the last thirteen consecutive quarters, development of the non-oil sector -which is vital to achieve long-term economic stability, according to analysts- has not been attained.

Based on the statistics disclosed by the Central Bank of Venezuela (BCV), non-oil exports dropped 8.5 percent from USD 7.4 billion in 2005 to USD 6.7 billion last year.

In his 2006 report, BCV president Gastón Parra Luzardo explained: "non-oil exports recorded a slight fall that could be associated to reorientation of domestic production of some commodities to supply the domestic market, where demand continued to expand."

However, sources in the business sector claim that the fact that non-oil exports have stagnated because there is a need to supply the domestic market shows a merger growth of the private sector's production capacity.

Concomitantly, imports skyrocketed from USD 23.6 billion in 2005 to USD 32.2 billion last year.

Because of exchange controls in force since 2003, the US dollar has become a cheap good boosting imports and causing serious troubles to Venezuelan industries, which are not capable of competing efficiently.