Tendencia Económica No. 221

Abstract

Editorial: The Internationalization Mission that ended the past 9 of august, emphasizes the low trade integration and the need of strategies to enable a bigger interaction between the local economy with the rest of the world. The analysis establishes that the exports are less than the half as they’re supposed to be according to the GDP and population levels, also that the role of the country in the global value chains its insignificant in comparison with our pairs in the region. Likewise, they highlight the absence of integration mechanisms who allow the harnessing of human capital stemming from the Venezuelan migration and attract global talent to the local economy.

Actualidad: The price of oil has shown a growing behavior so far this year, with levels exceeding $80 per barrel in recent months. In line with this, this Actualidad article assesses the effects that high oil prices may have on the fiscal accounts of the Central National Government and on the Balance of Payments and the country's external accounts. We expect that higher oil prices may have a positive effect on the current account, through the impact of higher prices on crude exports. Likewise, the higher dividends and oil rents that the nation receives from the high prices of this commodity may contribute to a reduction in the fiscal deficit in 2022.