Venezuela’s long-running economic crisis appears to have hit bottom

Experts say it appears the long-running economic crisis in Venezuela has finally hit bottom, but it will take a while for those who earn their income in bolivars to feel relief.

CARACAS, Venezuela – Gladys Rosales, a retired nurse in Caracas, said she has trouble making ends meet. She has to rely on the bolivar despite the ongoing dollarization in Venezuela.

And although experts said there are signs that the long-running economic crisis has hit bottom, it will take a while for Rosales, 60, to get relief.

“Note that my old age pension is 7 bolivars,” Rosales recently said in Spanish.

The dollar has traded for about 4.5 bolivares in the last four months and that is a sign that the Venezuelan currency has finally stabilized, Bloomberg reported last week.

In January, Venezuelan President Nicolás Maduro touted economic growth during his national address. He started to relax some of the strict controls in 2019.

Venezuela’s annual inflation rate closed at 2,959.8% in 2020 and at 686.4% in 2021, according to Venezuela’s central bank data released in January.

“We are still going to have the highest inflation in the world,” said Caracas-based economist Marcos Antonio Capote, a consulting manager for OMNIS.

An annual survey by academics from major universities in Venezuela estimated last year that the poverty level was at 94%. archives: Feb. 26, 2021 report

Weddle reported from Bogotá, Colombia. Torres reported from Miami.

About the Authors:

The Emmy Award-winning journalist joined the Local 10 News team in 2013. She wrote for the Miami Herald for more than 9 years and won a Green Eyeshade Award.