Key View

• Beijing's return to the Venezuelan market signals a warming of bilateral relations, but does not guarantee a sustained flow of investment moving forward
• The USD5bn line of credit offered by the CDB will struggle to boost output from existing joint-ventures over the coming year due to extensive damage across the Venezuelan supply chain

Key View

Venezuela's consumer sector will continue to contract amidst the broader economic calamity in the country. Households will see spending power undermined by rising unemployment and hyperinflation, while increased price controls will exacerbate shortages of essential goods.

The consumer sector in Venezuela will continue to be hammered on

BMI View: The depreciation of the Venezuelan bolivar will not slow in the months ahead, as the Venezuelan government will do little to address the fundamental drivers of depreciation.

• The Venezuelan bolivar (VEF) will continue to depreciate at a rapid pace in both the official and black markets in 2018.
• The re-denomination of the currency will