The Economy of Venezuela
The 2014 Oil Price Crash and Collapse
When oil prices fell in 2014, Venezuela's dollar income collapsed, imports fell sharply and the economy spiralled down.
The bust came fast.
Falling revenue
Export earnings dropped, and there were few reserves.
Imports
With less foreign currency, imports of food, medicine and parts fell.
Output
Factories closed, and oil production declined as investment and maintenance faltered.
Debt
The government continued to service some debt while people went short.
An empty pharmacy
Drugs became scarce because there was no foreign currency to import them.
Blaming only oil prices
Policy also mattered.
Key takeaways
- Oil prices fell in 2014.
- Imports were squeezed.
- Production declined.
- Debts continued.
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