The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This paper reviews economic developments in Venezuela during 1995-97. The overall public sector balance shifted from a deficit of 7 percent of GDP in 1995 to a surplus of 71/4 percent of GDP in 1996. This massive swing was owing to a major increase in the underlying oil surplus, a decline in the non-oil underlying deficit, and the fact that virtually no financial assistance was provided to the banking system, compared with the cumulative 161/2 percent of GDP provided in 1994-95 in the context of the banking crisis.