Venezuela's Economic Crisis Deepens Amid Political Unrest

Severe Economic Indicators

Venezuela is facing a severe economic crisis characterized by extremely high inflation and unemployment rates. The International Monetary Fund (IMF) projects the country's GDP to be $82.77 billion in 2025, with a per capita GDP of $3,100. The inflation rate remains critically high at 269.9% on average, with an estimated 548.6% by the end of the period.

Political Instability

Recent political developments have further complicated the economic situation. There have been reports of significant political unrest, including a purported operation involving the capture and removal of Venezuelan President Nicolas Maduro. These events have contributed to the ongoing economic challenges.

Economic Challenges

The unemployment rate stands at 35.6%, indicating weak job creation in the formal sector. Despite a $3.52 billion current account surplus (about 4.2% of GDP) in 2025, the economy remains fragile. The surplus is primarily supported by commodity exports rather than productive sector expansion.

Fiscal Concerns

The government recorded a net lending/borrowing deficit of -3.6% of GDP in 2024, while general government debt reached 164.3% of GDP. This high debt burden places Venezuela in a category of severe debt distress, further constraining its economic recovery prospects.