Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Economy of Venezuela - statistics & facts
The economy of Venezuela has gone from bad to worse over the past decade. After peaking in 2012 at 372.6 billion U.S. dollars, the country's gross domestic product (GDP) sank dramatically the following years, standing below 120 billion dollars in 2024. Simultaneously, Venezuela has been ridden by extremely high inflation rates. The economic crisis has caused a humanitarian crisis, with empty shelves, insufficient supplies, and a continuous rise in food prices significantly worsening living conditions.
This is despite the fact that the Latin American country boasts the largest proved oil reserves worldwide. Today, Venezuela ranks as the 10th largest economy in Latin America and the Caribbean, but estimates show that it could potentially be one of the three largest. What are the reasons behind the economic quagmire? And are there hopes for a way out?
The fall of the oil industry
Venezuela's economy is tightly connected to its oil industry. During the 2000s, the government of the revolutionary President Hugo Chávez profited from high global oil prices. But when these fell heavily in 2014, the government of his controversial successor Nicolás Maduro failed to adjust, and the country's national income fell dramatically, with oil being the only main source of income. During 2013, more than 96 percent of the export value of Venezuela came from different petroleum products, but almost a decade later, this figure was lower than 12 percent. Equally, between 2013 and 2023, the total export value of goods decreased by 90 percent, or around 80 billion U.S. dollars. Venezuela's oil industry has been further constrained by political instability, international sanctions, poor resource management, and a lack of strategy, bringing the sector to a total collapse.
Political and economic crisis
The economic crisis goes hand in hand with a political crisis in Venezuela. Under the rule of Nicolás Maduro, national debt levels have skyrocketed, today being the highest in Latin America. Moreover, the budget balance in relation to GDP has also been negative since 2006. Additionally, the country has been hit by extremely high inflation rates, reaching hyperinflation in the worst years. In 2025, Venezuela recorded the highest annual inflation rate worldwide at 270 percent, with the government adding fuel to the fire by printing money to finance deficits.
The economic crisis has caused a dire humanitarian situation. Today, more than 80 percent of the country's population live in poverty, with approximately half of the population living in extreme poverty. Few jobs are available, and those that are are poorly paid. As a result, Venezuela now ranks as one of the most miserable countries in the world. Simultaneously, Maduro clung to power, refusing to give up his position despite three highly contested elections and increasing international pressure.
The seizure of Maduro and an unclear path forward
In early 2026, things took a dramatic turn in Venezuela. President Nicolás Maduro was captured by U.S. troops and flown to New York for trial following an extended period of threats by U.S. President Donald Trump and an oil blockade. Upfront, the U.S. government had declared Maduro the leader of an international drug trafficking terrorist organization, a claim which truth is disputed by many international experts, and attacked numerous boats in the Caribbean allegedly involved in drug trafficking. After Maduro's removal, his Vice President Delcy RodrÃguez assumed office as acting president, but the future of the country and its economy remain highly uncertain. Experts have calculated that rebuilding Venezuela's oil industry to reach its former output will take at least 10 years, and American oil firms have so far been reluctant to invest large sums in the unstable country.
