Venezuela was originally a very wealthy and successful country. It also has the world's largest oil reserve, but this along with the rise in power of President Murado has led to a country in crisis. Venezuela has the highest inflation in the world which means most people have little to no access to most medicine and food. Many people are struggling to survive which has led to many protests and violence in this country.
The economic crisis is set to get worse in 2018, with the International Monetary Fund predicting unemployment levels of 30% and prices of goods to rise 13000%. The GDP is also set to continue to decrease. The currency has become 'nearly worthless' and the 'government has defaulted on its debt'. The future of the Venezuelan economy looks bleak.
An overview of the how the Venezuela economic crisis began and how it has progressed. This includes a break down of the progress from even as far back as 1830 to now. The economic crisis is decades in the making and is due to how heavily the Venezuelan economy relied on oil. It is also heavily correlated to political instability that seems to continue to plague Venezuela.
The economic and political crisis had also led to food and medicine shortages and extreme crime rates. Nicolas Maduro and Hugo Chavez (the current and previous presidents) are said to have caused the economic crisis. This history of corrupt politicians as well as the reliance on the Venezuelan economy on oil (25% of GDP) has lead to the current crisis. They are also experiencing extreme inflation and price levels worsening crisis because no one can afford basic needs such as toilet paper and soap.
In this article, the decline of Venezuela's economy is compared to Zimbabwe a decade ago. These two countries are similar in the economies in a few ways, such as overprinting money as a way to try and fix the economy. It also links extreme loyalty, especially to those in power, to the failed economies. The author warns that this could become a problem closer to home than we would like. Due to the extreme reliance on oil in the Venezuelan economy, when oil crashed in 2014 there was not enough money to pay bills. The government simply printed a lot more money, but even this could not patch up the broken economy.