Venezuela has been struggling with an ongoing economic crisis for over a decade. The country’s economy has been severely impacted by falling oil revenues, political instability, and international sanctions. In 2025, the situation worsened as the government, led by President Nicolás Maduro, declared an “economic emergency” due to skyrocketing inflation and a growing recession. Venezuelans have faced a dramatic decline in their purchasing power, with many people unable to afford basic necessities. This crisis has significantly affected both the economy and daily life, particularly in areas like Maracaibo, where many businesses have closed, and unemployment is high.

Despite these challenges, some improvements have been observed in certain regions, such as Caracas, where economic measures introduced by the government allowed for some stabilization. Experts highlight that the use of the U.S. dollar, which was once restricted, has helped reduce the worst effects of hyperinflation. However, the benefits of these changes have not been felt equally across the country. For example, businesses in Caracas have flourished, while those in other cities continue to struggle. The inflation rate is predicted to reach 180-200%, which could lead to more people losing their jobs or reducing spending. In response to this, President Maduro has pushed for new emergency measures, including tax reductions and promoting local production. However, experts caution that these actions may not be enough to resolve the crisis in the long term, and Venezuela’s path to recovery remains uncertain.