The Decline Of Venezuela's Economy

Over the last five years Venezuela’s economy has been decaying pretty badly. Most of the decline has come from government spending. Venezuela’s economy is dependent on how the oil revenues are now and what ends up happen with that is going to be what ends up happening with the economy in Venezuela. Around 95 percent of the export earnings come from the oil revenue. Since last reported in 2014 there has been widespread shortages with consumer goods, and there are issues with the central bank of international reserves declining too. It’s estimated the Venezuela’s GDP is going to shrink another 7 percent by the end of 2015. The president of Venezuela (Nicolas Maduro) wants to start controlling the ­­government spending and control over the economy. …show more content…
The government however has been trying to be strict about the currency since 2003. There is currently only three official currency exchange systems set in place. These are to help the sale of dollars for private firms in Venezuela, mostly due to them not being able to get the proper rates based on the import priorities of the government. The president wants to further the strict restraints on the currency controls however. The high cost for oil and production is causing poor cash flow and has started a slowed down investment in the oil sector of the world. This has also caused the fall of the oil production, and like previously stated that’s the main source of their