There was not enough money to import products

Ten years ago, under the presidency of Hugo Chavez, witnessed a decline in oil prices. In 2017, the cost of a barrel dropped to around $50, down from a high of more than $100, along with the U.S. instituted wide-ranging sanctions against Venezuela's dictatorial government.

"When the price of oil began to drop in the early 2000s, there was not enough money to import products," said Alejandro Velasco who is a professor of New York University who specializes in Venezuelan politics, in a phone interview. "As consequently the country was left with no money in the real world for the country's economy."

Venezuela's coffers were empty after it spent its most recent oil wealth on social services like subsidized medical and food services, as well as literacy programmes. Chavez was also known to have removed perceived dissenters from the oil industry after an attempted military coup, affecting production.

A widespread system of corruption within the administration further damaged the economy, as per Paul Angelo, a fellow at the Council for Relations who is an expert on Latin American politics.