Venezuela's Economic Prospects: A 2025 Vision

Venezuela plans a $22.7 billion budget for 2025, up 11% from 2024, as announced by Vice President Delcy Rodriguez. The government adopted orthodox policies to combat hyperinflation and imposed credit restrictions and a fixed exchange rate to stabilize prices, despite currency depreciation challenges.

Venezuela's Vice President Delcy Rodriguez announced a proposed 2025 budget of $22.7 billion, marking an increase of nearly 11% from the current year's $20.5 billion. In her address to the government-allied National Assembly, Rodriguez expressed optimism that 2025 would be an improved year as the nation learns to navigate its challenges.

However, Rodriguez provided no specifics on expected economic growth rates or inflation forecasts. In response to years of hyperinflation and stringent U.S. sanctions, President Nicolas Maduro's administration began implementing orthodox policies in 2022. These included curtailing credit, reducing public expenditures, maintaining a fixed exchange rate, and conducting major foreign currency sales.

Despite claims of taming extreme inflation rates, the country's economic landscape remains volatile. With Maduro set to begin a third term after a contested election, recent decisions to allow the bolivars to float have led to its depreciation, now trading at approximately 45 bolivars per dollar.

(With inputs from agencies.)