How poor are we?

Venezuela’s population as of 2017 is approximately 32 million people.   The World Bank estimates that 33% lives in poverty.  

The minimum wage as of August 19, 2017 is approximately BsF 250,531, which is equivalent to $15  per month at the black market exchange rate.

To put things in perspective, the cost of lunch in an average location is $2 to $3.  A meal in McDonalds costs $2.

Viewed from a different angle, the cost of the “Canasta Basica” (minimum items to provide food for a family of five) is approximately $60, which means that two working members of a family can only provide the basic food needs for half of a month.

The result of this asymmetry is that many families need to find creative ways to obtain food.  Sadly, many find themselves begging for charity on the streets, or searching for food in the dumpsters.

On a larger scale Venezuela’s economy has contracted 5.6%  when comparing 2016 GPD vs 2010.  GPD per capita for the same period has contracted 13%.  In contrast, total external debt has increased 21.5%.  Venezuela’s economy, heavily dependent on oil price, has suffered the impact of a reduction of approximately 50% of the oil barrel price.

The combination of a lower oil price, high public expenditures, and little to no economic development has brought Venezuela and their people to what is possibly the poorest period of its modern history.

Source: World Bank Economic Indicators and other sources