Editing Economy of Venezuela (section)

=== 1999–2013 ===
{{main|Economic policy of the Hugo Chávez government}}
[[Hugo Chávez]] was [[1998 Venezuelan presidential election|elected President in December 1998]] and took office in February 1999. From 1999 to the end of 2012, when Hugo Chavez health decayed preventing him from fulfilling any [[President of Venezuela|presidential]] duties,<ref name=":15">{{Cite web |date=2012-12-31 |title=Venezuela VP: Chavez suffers 'new complications' |url=https://www.nbcnews.com/id/wbna50327377 |access-date=2024-12-17 |website=NBC News |language=en}}</ref> the [[GDP]] grew from 97.52 billion dollars to 372.59 billion dollars.<ref>{{Cite web |title=Venezuela - Gross domestic product (GDP) 2025 |url=https://www.statista.com/statistics/370937/gross-domestic-product-gdp-in-venezuela/ |access-date=2024-12-17 |website=Statista |language=en}}</ref>  In the same period, inflation remained stable around 20% year.<ref>{{Cite web |title=Venezuela - Inflation rate 2025 |url=https://www.statista.com/statistics/371895/inflation-rate-in-venezuela/ |access-date=2024-12-17 |website=Statista |language=en}}</ref> 

From 1999 In 2000, oil prices soared, offering Chávez funds not seen since Venezuela's economic collapse in the 1980s.<ref name="FTWD" /> Chávez implemented economic policies that leaned toward [[social democracy]], utilizing oil revenues to fund social programs. These policies increased Venezuela's economic reliance on high [[Price of oil|oil prices]].<ref name="FTWD" />

During the first four years of Chávez's presidency, the economy initially grew between 1999 and 2001 but contracted from 2001 to 2003, returning to GDP levels similar to those of 1997. The early decline was influenced by low oil prices and later exacerbated by the events surrounding the [[2002 Venezuelan coup attempt|2002 coup attempt]] and the [[2002–2003 general strike]]. Additional contributing factors included [[capital flight]] and reduced [[Foreign direct investment|foreign investment]]. GDP decreased from 50.0 trillion bolívares in 1998 to 42.4 trillion bolívares in 2003 (measured in constant 1998 bolívares).<ref>Weisbrot and Sandoval, 2008. Sections: 'Executive Summary,' and 'Social Spending, Poverty, and Employment.'</ref>

The hardest-hit sectors in the worst recession years (2002–2003) were [[construction]] (−55.9%), [[petroleum]] (−26.5%), [[commerce]] (−23.6%) and [[manufacturing]] (−22.5%). The drop in the petroleum sector was caused by adherence to the OPEC [[Quota share|quota]] established in 2002 and the virtual cessation of exports during the PdVSA-led general strike of 2002–2003. The non-petroleum sector of the economy contracted by 6.5% in 2002. The bolívar, which had been suffering from serious inflation and devaluation relative to international standards since the late 1980s,<ref>{{cite web|url=http://data.worldbank.org/indicator/NY.GDP.DEFL.ZS?contextual=region&locations=VE|title=GDP deflator (base year varies by country) {{!}} Data|date=19 August 2016|website=data.worldbank.org|publisher=World Bank national accounts data and OECD National Accounts data files.|archive-url=https://archive.today/20160819232615/http://data.worldbank.org/indicator/NY.GDP.DEFL.ZS?contextual=region&end=2013&locations=VE&start=1985&view=chart&year_high_desc=false|archive-date=19 August 2016|access-date=19 August 2016|url-status=dead}}</ref> stabilized around 20% inflation.<ref>{{Cite web |title=Venezuela - Inflation rate 2025 |url=https://www.statista.com/statistics/371895/inflation-rate-in-venezuela/ |access-date=2024-12-17 |website=Statista |language=en}}</ref>

During [[Hugo Chávez|Chávez's presidency]], [[inflation]] was significantly reduced and maintained at an average of around 20%, marking a substantial improvement compared to the late 1980s and the turbulent 1990s, when inflation reached its highest point at 100% in 1996. The inflation rate, as measured by the [[consumer price index]], stood at 35.8% in 1998, dropped to a low of 12.5% in 2001, and rose to 31.1% in 2003.<ref>{{Cite web |title=Venezuela - Inflation rate 2025 |url=https://www.statista.com/statistics/371895/inflation-rate-in-venezuela/ |access-date=2024-12-17 |website=Statista |language=en}}</ref> In response to pressures on the [[Venezuelan bolívar|bolívar]], declining [[international reserves]], and the economic impact of the oil industry work stoppage, the [[Ministry of Finance (Venezuela)|Ministry of Finance]] and the [[Central Bank of Venezuela|central bank]] suspended foreign exchange trading on January 23, 2003. Shortly afterward, the government established [[CADIVI]], a currency control board, on February 6, 2003. CADIVI regulated foreign exchange procedures and set the exchange rate at 1,596 bolívares per US dollar for purchases and 1,600 bolívares per US dollar for sales.

The [[Real estate business|housing market]] in Venezuela shrunk significantly with developers avoiding Venezuela due to the massive number of companies who have had their property expropriated by the government.<ref>{{cite news|last=Grant|first=Will|title=Why Venezuela's government is taking over apartments|url=https://www.bbc.co.uk/news/world-latin-america-11756492|access-date=15 December 2013|newspaper=BBC|date=15 November 2010}}</ref> According to [[The Heritage Foundation]] and ''[[The Wall Street Journal]]'', Venezuela had the weakest property rights in the world, scoring only 5.0 on a scale of 100, with expropriation without compensation being common.<ref>{{cite news|title=Expropriations in Venezuela|newspaper=The Economist|date=29 October 2010}}</ref> The housing shortage in Venezuela was significant enough that, in 2007, a group of squatters occupied the [[Centro Financiero Confinanzas]], an unfinished economic complex originally intended to represent the country's economic growth.<ref>{{cite news|title=A 45-Story Walkup Beckons the Desperate|url=https://www.nytimes.com/2011/03/01/world/americas/01venezuela.html?pagewanted=all&_r=0|access-date=15 December 2013|newspaper=The New York Times|date=28 February 2011|first1=Simon|last1=Romero}}</ref>

The Venezuelan economy contracted by 5.8% in the first quarter of 2010 compared to the same period in 2009<ref name="businessweek.com">Toothaker, Christopher. [https://web.archive.org/web/20121025064529/http://www.businessweek.com/ap/financialnews/D9HFHLG00.htm "Chavez: Venezuela's economy soon to recover"]. Bloomberg Businessweek. 8 August 2010. Retrieved 3 September 2010.</ref> and recorded the highest inflation rate in [[Latin America]] at 30.5%.<ref name="businessweek.com" /> President Chávez expressed optimism about Venezuela's recovery,<ref name="businessweek.com" /> although the [[International Monetary Fund]] (IMF) projected that Venezuela would be the only country in the region to remain in recession that year. <ref>Cancel, Daniel. [https://www.bloomberg.com/news/2010-08-08/chavez-says-venezuelan-economy-is-already-recovering-following-recession.html "Chavez Says Venezuela's Economy Is `Already Recovering' Amid Recession."] Bloomberg. 8 August 2010. Retrieved 3 September 2010.</ref> The IMF described Venezuela's economic recovery as "delayed and weak" compared to other countries in the region.<ref name="eluniversal.com">{{in lang|es}}[http://www.eluniversal.com/2010/04/21/eco_ava_fmi:-venezuela-unico_21A3774771.shtml "FMI: Venezuela único país cuya economía se contraerá este año"]. El Universal. 21 April 2010. Retrieved 3 September 2010.</ref> 

Nevertheless, the Venezuelan economy resumed a growth trend in subsequent years, continuing until 2012.<ref>{{Cite web |title=Venezuela - Gross domestic product (GDP) 2025 |url=https://www.statista.com/statistics/370937/gross-domestic-product-gdp-in-venezuela/ |access-date=2024-12-17 |website=Statista |language=en}}</ref> The economic downturn began during [[Nicolás Maduro]]'s leadership, as Chávez’s health declined and he became increasingly unable to govern effectively.<ref name=":15" />