Chapter 10: Venezuela (2024)

FAQs

Is Venezuela a rich or Poor country? ›

By 2023, the economic situation of Venezuela improved, with the economy growing by 15% and extreme poverty rates decreasing, thanks to a liberalized economy and more access to the United States dollar. However, inequality is high, with wealthy Venezuelans making more than 70 times the poorest ones.

Most observers cite anti-democratic governance, corruption, and mismanagement of the economy as causes of the crisis. Others attribute the crisis to the "socialist", "populist", or "hyper-populist" nature of the government's policies, and the use of these policies to maintain political power.

Meanwhile, government mismanagement and U.S. sanctions have led to a drastic decline in oil production and severe underinvestment in the sector.

CARACAS, Jan 15 (Reuters) - Venezuela's economy grew more than 5% in 2023 and growth will reach 8% this year, President Nicolas Maduro said on Monday during his annual address to the government-allied legislature.

1. Burundi. Burundi consistently ranks among the poorest countries globally. Economic instability, political unrest, and reliance on subsistence agriculture contribute to its economic struggles.

The poorest country in the world in 2024 is South Sudan, with a GDP-PPP of $476.

Illicit financial flows related to Venezuela include proceeds from the sale of commodities, such as oil and gold, and drug trafficking. Oil remains a major source of income for Venezuela and has been a mechanism for fraud and corruption, according to Treasury officials.

Do not travel to Venezuela due to crime, civil unrest, kidnapping, and the arbitrary enforcement of local laws. Reconsider travel due to wrongful detentions, terrorism, and poor health infrastructure.

Cuba, which was considered Second World but remains Third World economically. The same is true with North Korea, which was Second World and is Third World. And, finally, Venezuela, similar to Saudi Arabia, was considered Third World politically but is First World economically.

Chevron will be allowed to continue lifting oil from its joint venture with PdV, solely for imports into the US. US-bound Venezuelan crude volumes averaged 133,000 b/d last year. Chevron said its Venezuela output was 150,000 b/d at the end of 2023.

Who owns the oil in Venezuela? ›

Oil reserves in Venezuela are the largest in the world and the state-owned PDVSA provides the government of Venezuela with substantial funding resources.

China, which never suspended imports of Venezuelan crude amid U.S. sanctions, last year remained the largest destination for Venezuela's oil, taking about 65% of the country's average exports of 695,192 barrels per day (bpd), according to LSEG vessel monitoring data and PDVSA documents.

Refugee Crisis

Many Venezuelans were fleeing harsh economic conditions. Some were escaping persecution, including by security forces and gangs.

A Country in Crisis

The economy and basic social services continue to spiral downward. The humanitarian crisis is further exacerbated by the COVID-19 pandemic. For example: 9.3 million Venezuelans are moderately to severely food insecure – one-third of the population.

U.S. Development Assistance to Venezuela

The United States supports the protection of human rights, the promotion of civil society, the strengthening of democratic institutions, and transparency and accountability in the country.

The poorest country in South America is Venezuela.

Since 2017, the share of households living under the poverty line in Venezuela has been surpassing 90 percent. In addition, more than six out of every ten households (67.97 percent) lived in extreme poverty in 2021.

Venezuela's economic recession was so severe that the bolivar, the nation's currency, was worth close to nothing as a result of hyperinflation. While this inflation has dropped significantly, from 686 percent in 2021 to 234 percent in 2022, Venezuela still has one of the highest inflation rates globally.

Third, Mexico and Colombia are middle income countries. Venezuela is the only poor country you mentioned.