Oil Prices Drop and Venezuela’s Economy Suffers

Shortages are the norm in Venezuela these days says expert Jose Manuel Gonzalez. The lack of electricity due to a horrendous drought has surely ravaged many industries. At the heart of the South American nation’s economic woes, however, is the decrease in oil exports.
Oil prices have bottomed out and so have earnings in Venezuela. The figures are shocking. In 2014, the country sold $37.2 billion in oil. In 2016, the number is on track to reach only $12.6 billion. Venezuela is also a heavily debt-ridden nation.

Venezuela, like many countries, does require imports says Gonzalez in order to provide both bare essentials and luxury goods. Debt combined with lack of cash flow has made it difficult to pay creditors. Since creditors are no paid, the flow of imports ceases. Scores of problems end up being incurred and the economy has trouble getting back on track.

Venezuela is going to have a hard time, economically, for the foreseeable future.