Tensions remain high in Venezuela following a disputed presidential election on July 28. According to Human Rights Watch, at least 24 people have been killed, including protesters and bystanders, as well as a member of the Bolivarian National Guard. The post-election turmoil hits hard in a country already suffering from a weak economy.
In recent years, Venezuela has faced runaway inflation, political upheavals and falling oil prices, creating an extremely difficult environment for businesses and workers. The Venezuelan economy has suffered a prolonged collapse, with triple-digit inflation and massive migration in search of better prospects. “Venezuela has experienced a recession unprecedented for a Latin American country or globally for a country without war. The economic contraction between 2014 and 2021 exceeded 70 percent and reached its lowest point,” says Asdrúbal Oliveros, director of the consulting firm Ecoanalítica, in an interview with CNN.
The country has emerged from the hyperinflation period it experienced between 2018 and the end of 2019; however, it is still premature to consider it restored from the losses accumulated in the last decade. Gross Domestic Product (GDP) at current prices is slowly recovering, with an estimated value of US$102.3 billion in 2024, but remains a fraction of pre-crisis levels. The national public debt has risen to US$4.2 trillion in 2023, further exacerbating the economic situation. Although the unemployment rate is relatively low at 5.5 percent, this figure does not fully reflect the underemployment and informal work faced by many Venezuelans.
While 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 affect Venezuelans' standard of living. The minimum wage has remained frozen at 130 bolivars since March 2022, but its value has been devalued 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.
The deterioration of finances in recent years is evident too in everyday life, with over 80 percent of the population living in poverty and 53 percent facing extreme poverty.
