Economics Case Studies, Economic Crisis Case Studies

Code : ECC0058

Year : 2018

Industry :Macroeconomic analysis

Region : Venezuela

Teaching Note: Available

Structured Assignment : Not Available

Abstract:

Venezuela has experienced a worst economic nightmare since 2014 with the rapid erosion of economic stability and democratic credibility. Triggered by the downturn in global oil prices, Venezuelan inflation touched exorbitantly high levels of around 1600 percent. With barely 25 percent of the population able to maintain a regular diet, growing crime levels, and raging humanitarian crisis, the poverty rate has shot up to a whopping 82 percent, thus making the Venezuela’s economy the worst performing economy in the world in 2017. President Nicolas Maduro and his United Socialist Party of Venezuela held a firm grip on power, despite growing resistance from both within and outside the country. Worsening economic growth at -18.6 percent in 2016, massive price inflation, mounting foreign debt service obligations, the collapse of Venezuelan Bolivar to alarming levels, the steep fall in the productivity of the dominant public sector enterprises, unproductive large bureaucracy, shortage of essential goods and services, more particularly the food, has pushed Venezuela into a worst-ever macroeconomic crisis of the century.

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