U.S. Sanctions Shake Venezuela’s Economy Ahead of 2024

Venezuela's economic recovery hopes took a hit this week as the U.S. reinstated oil sanctions, reversing earlier relief measures. The move has sent shockwaves through local markets, with merchants in Caracas fearing slashed incomes and stalled growth projections for 2024.

Why the Sanctions Matter

The sanctions target Venezuela's oil sector—the backbone of its economy—threatening exports that account for over 90% of the country's foreign revenue. Analysts say this could shrink GDP growth projections by up to 5%, a blow likened to "unplugging a life-support system" for struggling businesses.

Local Voices: Uncertainty in Caracas

"This feels like a punch to the gut," said María González, a street vendor selling imported goods. "Prices will spike, and customers will disappear." Correspondent Mary Triny Mena reports long lines at gas stations and supermarkets as residents brace for shortages. Meanwhile, social media buzzes with memes comparing Venezuela's economy to a "rollercoaster without seatbelts."

While U.S. officials cite stalled democratic reforms as the reason for sanctions, Venezuelan leaders call the decision "economic warfare." The ripple effect? Global oil prices could climb, impacting drivers and industries worldwide.

Reference(s):

Venezuelans concerned over return of U.S. oil sanctions

cgtn.com