The Oil Dependence and Economic Decline

Venezuela, possessing the largest oil reserves in the world, historically relied on petroleum revenue to fund its economy. From the 1920s to the early 2010s, the country experienced substantial growth driven by oil exports, reaching a peak GDP in 2012. However, this dependence on oil created a fragile economy vulnerable to external shocks and mismanagement, leading to a catastrophic decline. The fall in oil revenues post-2014, coupled with misallocation of resources and rampant corruption, resulted in a staggering loss of over 80% of Venezuela's GDP in less than a decade.