Unraveling Venezuela's Crisis Through Numbers

Political Tensions and Violence

Venezuela continues to grapple with high tensions following a controversial presidential election that took place on July 28. Human Rights Watch reports that the post-election chaos has resulted in the death of at least 24 individuals, including protesters, bystanders, and a member of the Bolivarian National Guard. This turmoil adds to the existing struggles of a country already grappling with a faltering economy.

Economic Woes

Over the past few years, Venezuela has been plagued by skyrocketing inflation, political instability, and plummeting oil prices, all of which have created a challenging environment for businesses and workers alike. The Venezuelan economy has been in a state of continuous decline, characterized by triple-digit inflation and large-scale migration in search of better opportunities. Asdrúbal Oliveros, director of the consulting firm Ecoanalítica, in a conversation with CNN, stated, “Venezuela has undergone a recession that is unparalleled for a Latin American country or globally for a country not at war. The economic contraction between 2014 and 2021 exceeded 70 percent and reached its lowest point.”

Hyperinflation and Recovery

While Venezuela has managed to come out of the hyperinflation phase it experienced between 2018 and the end of 2019, it is still too early to consider the country as having recovered from the losses accumulated over the past decade, as illustrated by Statista's Anna Fleck in the chart below. The country's Gross Domestic Product (GDP) at current prices is gradually recovering, with a projected value of US$102.3 billion in 2024, but it still represents only a fraction of the pre-crisis levels.

Debt and Unemployment

Venezuela's national public debt has escalated to US$4.2 trillion in 2023, further aggravating the economic situation. Despite the unemployment rate being relatively low at 5.5 percent, this figure does not fully account for the underemployment and informal work that many Venezuelans are forced to undertake.

Inflation and Wages

Although Venezuelan inflation is no longer the highest in Latin America, with Argentina exceeding 200 percent, it remained above 50 percent in June 2024. This economic instability continues to impact Venezuelans' standard of living. The minimum wage has been stagnant at 130 bolivars since March 2022, but its value has depreciated to approximately $3.50. However, in May 2024, President Nicolás Maduro announced an increase in state bonuses for the public sector, which include the minimum wage, a $40 food bonus, and an “Economic War Bonus” that will increase from $60 to $90.

Poverty Levels

The financial deterioration over the past few years is also evident in the daily lives of Venezuelans, with over 80 percent of the population living in poverty and 53 percent facing extreme poverty.

Bottom Line

The numbers paint a grim picture of Venezuela's current situation. The country is grappling with political unrest, economic instability, and widespread poverty. It's a complex issue with no easy solutions. What are your thoughts on this situation? Share this article with your friends and start a conversation. Don't forget to sign up for the Daily Briefing, available every day at 6pm.