Oil-rich Venezuela has the world's cheapest gasoline. But it's also dealing with the world's worst economic crisis. So in dollar terms a bottle of water costs more in Venezuela than a tank of gas. But the government gasoline subsidies are no longer sustainable as Venezuela's economy keeps collapsing.
Moreover, why is Venezuela in a crisis?
Political corruption, chronic shortages of food and medicine, closure of companies, unemployment, deterioration of productivity, authoritarianism, human rights violations, gross economic mismanagement and high dependence on oil have also contributed to the worsening crisis.
Secondly, why did Venezuela print more money?
Foreign demand for the bolívar to buy Venezuelan oil crashed. As the currency's value fell, the cost of imported goods rose. The Venezuelan economy went into crisis. The solution of Venezuela's new president Nicolas Maduro, who succeeded Chavez in March 2013, was to print more money.
Is Venezuela a rich or poor country?
In 2015, Venezuela had over 100% inflation—the highest in the world and the highest in the country's history at that time. According to independent sources, the rate increased to 80,000% at the end of 2018 with Venezuela spiraling into hyperinflation while the poverty rate was nearly 90 percent of the population.
Is Venezuela worthless?
Hyperinflation in Venezuela is the currency instability in Venezuela that began in November 2016 during the country's ongoing socioeconomic and political crisis. Venezuela began experiencing continuous and uninterrupted inflation in February 1983, with double-digit annual inflation rates.