Venezuela’s economic downfall was rooted in its overreliance on oil revenue and unsustainable government policies. During the oil boom, leaders like Hugo Chávez funded expansive social programs and foreign initiatives while neglecting economic diversification. Fixed exchange rates and currency controls created distortions, leading to rampant black-market trading when oil prices crashed in 2014. With no reserves and strict dollar access, imports dried up, triggering shortages and hyperinflation. By 2024, the economy saw fragile stabilization through informal dollarization and remittances from abroad, bypassing broken state systems. However, this recovery has been uneven, benefiting only those with access to foreign currency. Despite a modest rebound in oil output following sanctions relief, inflation remains high and political repression has increased, especially after Maduro’s controversial re-election. The structural issues persist, leaving long-term recovery uncertain without fundamental reforms.