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CARACAS, Venezuela – Oswaldo Pinto is accustomed to disappointments during shopping excursions to buy food for his family. But he was especially demoralized the other day after scouring for bargains at the sprawling Coche Market, which serves a mostly working-class clientele on the southern fringes of this chaotic capital.
“This month I could only buy half of what I needed,” said Pinto, 41, a taxi driver and father of two, including a new baby at home. “Everything has just become too expensive. The prices are rising very quickly. Only meat is a bit cheaper now – but I can’t afford that either.”
His meager purchases in hand,Pinto left the market. Across the street from the exit, a mural blares a message of defiance:
A military boot with a red star stomps the head of a cartoonish Donald Trump, who bears a hitler mustache and whose golden crown lies on the ground. ”No more Kings,” is emblazoned in English, next to an oil barrel with a Spanish-language demand: “No More War for Petroleum.”
A man goes shopping with his pet in a market in Caracas.
Despite more than a quarter-century of socialist rule, economists say, Venezuela remains a deeply unequal nation. A 1% elite resides in mansions, tools about in luxury vehicles and flies off to ritzy foreign vacations. But the country’s once-robust middle class has been decimated, barely managing on salaries equivalent to about $50 to $120 a month.Then there is the ubiquitous underclass.
As many as 8 in 10 are mired in poverty, according to various surveys, in a country that sits atop the world’s largest proven petroleum reserves.
Even if Trump achieves his stated goal of revitalizing the run-down oil industry – a project that will probably take years – Venezuelans desperate for immediate change will probably be disappointed, experts say.
“Things should get better, but it will take time,” said luis Oliveros, economist at the metropolitan University here. “The key is the opening of the oil sector.”
Because of Venezuelans’ eroded spending power, markets are less busy than even a few months ago, according to merchants and customers.
Venezuela’s Economic Crisis: A Deep Dive
Table of Contents
Venezuela experienced a severe economic and humanitarian crisis beginning around 2014, marked by hyperinflation, shortages of basic goods, and mass emigration.
Origins and Contributing Factors
The crisis stems from a combination of factors,including a dependence on oil revenues,mismanagement of the economy under Hugo Chávez and Nicolás Maduro,and declining oil prices. Chávez’s nationalization policies, while aiming for wealth redistribution, lead to decreased investment and production in key sectors. When oil prices fell in 2014, Venezuela’s revenue plummeted, exacerbating existing economic vulnerabilities. Price controls, intended to make goods affordable, created artificial shortages as producers couldn’t cover costs. Printing money to finance government spending fueled hyperinflation.
Hyperinflation and Economic Collapse
Venezuela entered a period of hyperinflation in 2016, officially reaching 1,000,000% in November 2018, according to the International Monetary Fund (IMF). The Bolívar, Venezuela’s currency, became virtually worthless. Basic goods like food and medicine became scarce and unaffordable for many. The Economic commission for Latin America and the Caribbean (ECLAC) reported a cumulative GDP contraction of 30.5% between 2014 and 2018. In 2019,the IMF projected Venezuela’s inflation rate to reach 10,000,000%.
Humanitarian Impact and Migration
The economic crisis triggered a massive humanitarian crisis. Millions of Venezuelans faced food insecurity, malnutrition, and limited access to healthcare. According to the United Nations High Commissioner for Refugees (UNHCR),as of January 2023,over 7.7 million Venezuelans had left the country, seeking refuge primarily in neighboring countries like Colombia, Peru, and Ecuador. The UNHCR reported that by December 2023,this number had risen to over 8.1 million.
Government Responses and Attempts at Reform
the Maduro government implemented various measures to address the crisis, including currency controls, price freezes, and the launch of a digital currency called the Petro in February 2018. However, these measures largely failed to stabilize the economy. In 2021, the government partially dollarized the economy, allowing some transactions to be conducted in U.S. dollars, which provided some temporary relief from hyperinflation. On August 5, 2023, Maduro announced a series of economic reforms, including allowing more foreign currency transactions and reducing state control over some sectors.
Current Situation (as of January 30, 2026)
While hyperinflation has slowed substantially since 2021, Venezuela’s economy remains deeply troubled. The IMF estimates that Venezuela’s GDP grew by 4% in 2024, but remains well below pre-crisis levels. Inflation in 2025 was estimated at 40%, a substantial decrease from previous years, but still a important challenge. The country continues to grapple with high levels of poverty,unemployment,and emigration. The political situation remains unstable, hindering long-term economic recovery. The UNHCR reports that as of December 2025, over 8.3 million Venezuelans remain displaced abroad.
