How a resource-rich nation faced one of the most significant economic collapses in history.

Venezuela possessed immense natural wealth and potential, yet suffered a catastrophic economic decline. This episode examines the government decisions that triggered the collapse and explores the country's stabilization by 2024, driven by the unexpected adoption of the U.S. dollar.

By 2016, Venezuela faced a severe crisis characterized by food shortages, a lack of basic hospital supplies, rising child mortality, and widespread business closures. This collapse was considered avoidable, despite the country's significant advantages, including vast oil reserves, fertile agricultural land, and an educated workforce.

The episode traces the policy choices made during previous boom years that functioned as an economic time bomb. While 2016 marked a particularly low point, the narrative continues into 2024, highlighting a period of economic bounce back and stabilization influenced by the role of the U.S. dollar.

Source: Venezuela’s recent economic history (Update) | Planet Money