Economic
Venezuela's economy struggles under U.S. pressure with soaring prices
Venezuela's economy faces renewed strain as prices soar and the bolívar loses value amid tensions with the United States.
Venezuela's economy is under severe pressure as prices continue to rise and the national currency, the bolívar, loses value against the U.S. dollar. The gap between the official exchange rate and the parallel market rate has widened significantly, hitting 70%. The bolívar has depreciated by 80% in 2025 alone, and inflation estimates suggest it could reach 590% on a year-on-year basis by the end of 2025. The government's partial recovery in oil production and more permissive stance toward the private sector have allowed growth of over five percentage points in 2025, but this is being undermined by currency distortions and rising prices. With tensions escalating between Venezuela and the United States, including the threat of a naval and oil blockade, the outlook for 2026 appears bleak, with growth projected to be close to zero. Should the U.S. blockade be enforced, Venezuela could see its current oil revenue fall by 60%, sending the economy into another period of severe crisis.
- Status
- active
- Location
- Venezuela
- Date added
- 2026-03-26 05:40 UTC
- Last updated
- 2026-03-26 05:40 UTC
- Connected threats
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- Not Available