SURVEY INDICATES PRIVATE SECTOR NOT INVESTING LONG

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