Economic policy of the Nicolás Maduro administration
Economics in Venezuela starting in 2013 / From Wikipedia, the free encyclopedia
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When elected in 2013, Nicolás Maduro continued the majority of existing economic policies of his predecessor Hugo Chávez. When entering the presidency, President Maduro's Venezuela faced a high inflation rate and large shortages of goods[1][2][3] that was left over from the previous policies of President Chávez.[4][5][6][7] These economic difficulties that Venezuela was facing were one of the main reasons of the current protests in Venezuela.[8] President Maduro has blamed capitalism for speculation that is driving high rates of inflation and creating widespread shortages of staples, and often said he was fighting an "economic war", calling newly enacted economic measures "economic offensives" against political opponents he and loyalists state are behind an international economic conspiracy.[9][10][11][12][13][14] However, President Maduro has been criticized for only concentrating on public opinion instead of tending to the practical issues economists have warned the Venezuelan government about or creating any ideas to improve the economic situation in Venezuela such as the "economic war".[15][16]
This article needs to be updated. (December 2017) |
In 2014, Venezuela's economy entered a recession with its economy contracting by 4.8%, 4.9% and 2.3% in the first three quarters.[17] That year, Venezuela topped the Global Misery Index, which is based on inflation, unemployment, and other economic factors.[18] In December 2014, it was stated that Venezuela had a 93% chance of being in default,[19] while it has also been noted that the government has never failed to meet the country's foreign-debt obligations.[15]
In 2015, Venezuela again topped the Global Misery Index and was expected to have its economy contract 7% according to the World Bank.[20][21] The inflation rate also reached its highest rate in Venezuelan history.[22]
In 2019, Maduro started allowing transactions in U.S. dollars, a much more stable currency which is also used for international money transfers. People in Venezuela receive about $3.5 to $4 billion per year in remittances from family members; this change allowed Venezuelans to spend that money and started an economic recovery.[23]