Story perspectives

Venezuela Faces Historic 80% Economic Collapse Amid Crisis

1/4/2026

Summary

Story summary

Venezuela's economy contracted about 80% of GDP from 2013 to 2025, the largest downturn in modern history.
The collapse stemmed from monetizing deficits and expropriating supply chains.
Petróleos de Venezuela, S.A. (PDVSA) deteriorated after firing skilled workers and underinvestment, with production dropping from 3 million to under 700,000 barrels per day by 2020.
Hyperinflation, infrastructure failures, and a 7.7 million exodus worsened crisis, signaling failures in public goods and institutions.

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Story summary

Venezuela's economy contracted about 80% of GDP from 2013 to 2025, the largest downturn in modern history.
The collapse stemmed from monetizing deficits and expropriating supply chains.
Petróleos de Venezuela, S.A. (PDVSA) deteriorated after firing skilled workers and underinvestment, with production dropping from 3 million to under 700,000 barrels per day by 2020.
Hyperinflation, infrastructure failures, and a 7.7 million exodus worsened crisis, signaling failures in public goods and institutions.