At the beginning of the 20th century, oil was discovered in Venezuela; the country has the largest known reserves in the world today. Thanks to rising oil prices in the early 2000s, the government led by Hugo Chávez had sufficient funds to implement populist social welfare policies. These policies initially stimulated the Venezuelan economy, temporarily reducing economic inequality and poverty.
When Hugo Chávez died in 2013, Nicolás Maduro was elected with a narrow majority in a widely contested election. Falling oil prices and speculation brought about the collapse of the country's economy and led to hyperinflation, economic depression and shortages of basic goods. This in turn caused a drastic increase in unemployment, poverty, disease, malnutrition and crime. The sanctions imposed by the US government worsened the situation.
This socio-economic crisis heightened throughout 2019, 2020 and 2021, resulting in one of the largest population displacements in the history of South America. An estimated 6 million people Venezuelans have left the country since 2014.
The situation was further exacerbated by the restrictions imposed during the COVID-19 pandemic. By 2022, the country's GDP had fallen by 80% and the crisis is now considered chronic.
