Illicit Activities Contribute 16% to Venezuela’s 2022 GDP

Last year, illegal operations in Venezuela generated an estimated $9.4 billion. A study by Transparency Venezuela and Ecoanalitica confirmed this.

This amount makes up 16% of the country’s GDP. Moreover, it contributes to 56% of the government’s total income.

Fuel and gold smuggling are on the rise. Similarly, drug trafficking has increased over the last three years.

A new player, the illegal scrap metal trade, has also emerged. Transparency International’s Venezuelan chapter released these findings.

Economist Asdrúbal Oliveros of Ecoanalitica shared further details. Despite a 5% drop, the figure is close to 2021’s.

He attributes this drop to an increase in nominal foreign-currency GDP. Last year’s illegal activities accounted for 21% of the GDP, totaling $9.4 billion.

Oliveros highlighted these numbers on social media. These illegal earnings represent 77% of all 2022 imports.

The report reveals drug trafficking as the top illegal activity in several states. These include Bolívar, Sucre, and Zulia.

Additionally, the study mentions a rise in human trafficking.

The report indicates a troubling issue. Organized crime and political groups are closely linked.

This makes separating them difficult. Furthermore, these underground economies facilitate tax evasion.

They also discourage private investment and encourage money laundering.

Job scarcity and wage decline contribute to this issue. Venezuela’s economic crisis exacerbates the problem.

Although the economy showed slight growth last year, it’s now in decline. Experts believe this marks a new phase of recession.

Background

This situation isn’t new but has evolved over the years. Historically, Venezuela has grappled with corruption and economic instability.

The recent numbers, however, shed light on the alarming scale of illicit activities.

These underground businesses are not just side operations but a significant part of the national economy.

Moreover, last year’s slight economic growth offered a glimmer of hope. Unfortunately, it was short-lived.

The country is back in a recession, experts confirm. In this context, the rise of illicit economies could potentially worsen Venezuela’s long-standing issues.

More: Venezuela news in English, every day from The Rio Times.

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