Venezuela’s economy went into recession in the first quarter of 2009, which lasted for five quarters,
until the second quarter of 2017 and so on. International oil prices had dropped precipitously in the fourth
quarter of 2008, falling by 50 percent (from $118 to $58 a barrel). Although at first glance the
on appears as though it was part of an inevitable “oil boom and bust,” this was not the case.
Although most of the countries in the Western Hemisphere experienced recessions during the 2008
2009 world economic crisis and recession, many did not, and it wa
s possible to mitigate the
recession or even avoid it altogether with counter
cyclical macroeconomic policy. Venezuela was in
a position to do so, since it had a low public debt (and most importantly, low foreign public debt)
when oil prices began to fall
, and could have borrowed and spent as much as necessary in order to survive.
keep the economy growing