Oil was 'only' 12% of GDP in 2013, so a 50% reduction of the GDP since then can not be explained with a reduction in oil prices.
That’s not how it works, though. Majority of GDP is circulatory within an economy. Oil and gas were almost the entirety of their exports, what gave them purchasing power, internationally (which is necessary, as Venezuela is not exactly self-sufficient. No country really is, these days, although the us comes closest.) Again, Russia also didn’t have 45 percent of gdp in oil/gas. However, 70 percent of exports (90 percent, for Venezuela) came from that, so the fall of the oil prices led to a collapse of the rubble, as not much of value could be obtained with it, from an international perspective.
I’ll point out that for france, public spending is 56 percent, and has been in the range for quite some time.
Last edited by palou - on 25 January 2018
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