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Economic Crisis in Venezuela

Venezuela's economy is largely dependent on oil exports, which account for over 50% of GDP. When oil prices collapsed in 2014, it severely damaged Venezuela's economy. The economic crisis has led to hyperinflation, shortages of basic goods, and over 90% of the population living in poverty. The heavy reliance on oil, poor economic policies, and currency issues have all contributed to Venezuela's dire economic situation in recent years.

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Shubham Thakur
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134 views10 pages

Economic Crisis in Venezuela

Venezuela's economy is largely dependent on oil exports, which account for over 50% of GDP. When oil prices collapsed in 2014, it severely damaged Venezuela's economy. The economic crisis has led to hyperinflation, shortages of basic goods, and over 90% of the population living in poverty. The heavy reliance on oil, poor economic policies, and currency issues have all contributed to Venezuela's dire economic situation in recent years.

Uploaded by

Shubham Thakur
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

ECONOMIC CRISIS IN

VENEZUELA
INTRODUCTION

• Venezuela is a country on the northern coast of South America with diverse natural attractions.
• The economy of Venezuela is largely based on the petroleum sector and manufacturing.

• Revenue from petroleum exports accounts for more than 50% of the country's GDP and roughly 95% of total
exports.
• Venezuela is the member of OPEC.
• From the 1950s to the early 1980s the Venezuelan economy experienced a steady growth.
• During the collapse of oil prices in the 1980s the economy contracted, and inflation raised.
• From 2014 ,the oil prices collapsed and that was the biggest challenge for the country like Venezuela
dependent on oil
CURRENT SCENARIO

• More than 90% of the country’s population lives under Below Poverty Line.
• Cost of living is continuously increasing as prices reached high.
• Unemployment rate increased by 30% by last data.
• GDP growth is decreasing continuously and now it is -35 %
• Continuous Currency depreciation.
• Public Debt increased by $172 Billion as of current records.
• Bad economic policies and politics
• Falling Oil Prices and Dependent on Oil
REASON FOR reserves
CRISIS • Printing more money and switching currencies
• Nationalization of private companies
PROBLEM FACED– MACRO ECONOMIC
PERSPECTIVE

GDP Growth and growth of the Economy

Hyperinflation

Unemployment

Debt Trap
IMPACT OF CRISIS IN VENEZUELA

• Industry shutdowns
• Exodus
• Poverty and workers
• Violence
• Scarcity of basic goods
• Psychosocial factors and wellbeing
MEASURES TAKEN

• Fiscal policy:-
• Monetary policy:-
M1 increased 56% (dec2010-dec
2011)
M2 increased 53.6% (dec2010-
dec 2011)
Total Lending increased by
44.1%

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