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Venezuela’s Economy ‘Quite Fragile’, IMF Warns

  • February, 20, 2026 - 11:20
  • World news
Venezuela’s Economy ‘Quite Fragile’, IMF Warns

TEHRAN (Tasnim) – The International Monetary Fund (IMF) has described Venezuela’s economic and humanitarian situation as “quite fragile”, pointing to an estimated triple-digit inflation and a sharply depreciating currency.

World

In a briefing on Thursday with reporters, spokeswoman Julie Kozack said the organization continues to closely monitor developments in the South American nation, even though the IMF has had no formal relations with the Venezuelan government since 2019.

Kozack emphasized that any decision to re-engage would depend on guidance from the IMF’s member countries and the broader international community.

Economic and political crises in Venezuela have driven massive emigration: Since 2014, roughly a quarter of Venezuela’s population – about 8 million people – has left the country, creating one of the largest displacement crises in recent history.

The Venezuelan economy in 2026 remains in a state of deep structural crisis.

It is currently navigating a period of unprecedented volatility and rapid policy shifts, following years of hyperinflation and a contraction of its gross domestic product (GDP).

The United States military’s abduction of former President Nicolas Maduro last month has triggered a seismic shift in both the political and economic landscape, Al Jazeera reported.

While Maduro remains in US custody facing narco-trafficking charges, the acting administration under interim President Delcy Rodriguez has moved swiftly to implement a plan for stabilization, recovery and transition.

“Venezuela is undergoing a severe and prolonged economic and humanitarian crisis,” Kozack said during Thursday’s briefing. “Socioeconomic conditions remain very difficult. Poverty is high, inequality is high, and there’s widespread shortages of basic services. The situation overall is quite fragile.”

The IMF figures show Venezuela’s public debt sitting at roughly 180 percent of its GDP right now, before factoring in any court rulings or arbitration payouts from old defaults.

 
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