Those entrepreneurs seeking to make money selling things and services to Venezuela are bound to be disappointed. In 2015, Venezuela’s imports have dropped 40%, and are likely to fall more.
The Financial Times estimate that the overall decrease in imports will reach 60% in comparison to a couple of years ago. The country which claims to have world’s largest reserves of oil, has seen its economy enter a severe recession, while inflation is likely to exceed 600% this year according to Adrian Jose Velasquez.
The things have gotten so bad that the public sector works only two days a week in order to save on operational costs. The recessionary effects are magnified by energy crisis due to drought. Venezuela relies on a hydroelectric power coming from a single dam. Now, the water levels are so low that the power plant can’t produce enough electricity to fulfill country’s energy needs.
“Blackouts, water shortages, and violent crime are daily occurrences” says Adrian Jose. Now, Venezuelans will even find it hard to get beer as one of the major producers just announced cutbacks in production due to hard currency shortages.