Venezuela was promised an economic revival. But three months of minimum wage doesn’t add up to a single US dollar

By CNN Staff, CNN

(CNN) — It is payday Friday, and a popular shopping mall located in eastern Caracas is packed. But while the hallways look full and the display windows are brightly lit and well-stocked, many people enter and leave empty-handed.

Shoppers walk around, browse, compare prices, but they buy very little. The exception is a store belonging to a renowned international lingerie brand, around which a line has formed following the announcement of special discounts on certain products.

This is a recent scene, yet it reflects a reality that also existed prior to January 3 — when then-President Nicolás Maduro and his wife, Cilia Flores, were captured by the United States in a military operation in the capital.

At the mall’s food court, customers frequently pay using an app that grants small credit lines affiliated to certain merchants. Those credits are later repaid in installments. Its use has become incredibly popular, particularly for purchasing clothing and home appliances, though it is also used to pay for everything from a hamburger to grocery runs.

It occurs in a country with hyperinflation and a “legal reserve requirement,” or the percentage of funds that banks are mandated to hold in reserve, giving very few people access to credit cards.

Despite a sense of optimism for political and economic reform, Venezuelans surveyed by CNN feel their daily lives remain unchanged, even after announcements of investment and projections of economic growth.

At present, three months’ worth of minimum wage does not amount to even a single dollar. Money comes in and is spent at a brutal pace within a high-inflation environment marked, in particular, by rising fuel and food prices.

Inflation persists 100 days into Delcy Rodriguez’s government

More than 100 days have now passed since Delcy Rodríguez was sworn in as Venezuela’s acting president. During this new era in bilateral relations with the United States — a country that has pledged to support Venezuela through a phase of economic stabilization and transition — concrete changes have been announced.

An example of this is the easing of US Treasury Department sanctions previously imposed on Venezuela’s Central Bank, the Bank of Venezuela, and other banking entities. This move opens the door to greater integration with the global market and an increase in foreign currency earnings.

Added to this is the resumption of talks between the interim government, the International Monetary Fund, and the World Bank.

In an address on April 19, Rodríguez referred to the expectations of economic improvement since the transition of power on January 3. “I acknowledge the high expectations of our population, and our teams are working to achieve improvements within a reasonable timeframe,” she affirmed.

She referred to a series of economic variables, noting that “the gross domestic product is growing by nearly 9%, with 20 consecutive quarters of expansion,” and expressed her expectation that this growth would translate into more jobs, higher incomes and more tangible opportunities for citizens. She further added that “in the coming months, this growth should be felt most strongly by those who need it most.”

Following the reform of the Hydrocarbons Law and the Mining Law, Rodríguez noted that Venezuela is entering a new phase aimed at attracting investment through clear rules, and that various companies have expressed interest in investing in the country. She added that oil production currently stands at 1.1 million barrels per day.

Venezuela’s economic reality remains marked by contrasts. Unlike the shopping mall other businesses across the city appear deserted, and their corridors are rife with shuttered stores. There is a boom in restaurants, yet some open and close within just a few months. People rush to spend the bolívares they earn on basic necessities before that money loses its value amidst a wave of inflation.

Economic strain is routine, and budgets are rife with limitations. Among them, products that, due to their price, are no longer found on Venezuelans’ tables such as proteins. A kilo of meat costs between $7 and $10.

Businesses seek to adapt to the changes

In many businesses, the weight of reality presses down as owners await better times. One merchant, who preferred to remain anonymous for security reasons, told CNN that he is liquidating his bodegón, or the specialty shops that characterized Venezuela’s economy in 2019 and 2020 as a reflection of an import-driven market.

“It’s no longer a viable business,” he says. Consequently, he plans to pivot to a different sector —focusing on household goods — in an effort to adapt to consumers who have become more cautious with their spending.

While the bodegones are fading from the economic landscape, the vehicle dealership sector is emerging with vigor. Dealerships are multiplying amidst promises of economic prosperity in a country where the vehicle fleet has become increasingly outdated due to the economic crisis. Affording a vehicle is challenging for most, and many assembly plants have shuttered in recent years. This automotive supply is accompanied by dollar-denominated credit facilities offered by private companies, dealerships, and select banks, though this remains an option available only to a minority.

For the majority, the struggle is for essentials. Workers and retirees are demanding better incomes. Among them is Ángel García, who has become known for protesting with a large bone in his hand.

When asked by CNN what he intends to symbolize, he explains that the monthly minimum wage stands at 130 bolívares — approximately $0.27 — and that even purchasing that bone requires a significant effort. He said it represented the sorrow felt by the people, especially the elderly, in a Venezuela that is so rich in oil, yet simultaneously so poor. He laments that he is often forced to choose between eating and taking the bus.

While García notes that he is a senior construction technician and a former public servant with 38 years of service, he makes no secret of the frustration that drove him back to the streets of Caracas to protest, describing a reality marked by precariousness.

In a speech on April 8, Rodríguez asserted that, by Labor Day on May 1, she would announce a “responsible” wage increase, and that, as the country’s economic situation stabilized, further adjustments to workers’ incomes could be decided upon.

The difficult choice for many Venezuelans

A 71-year-old man, who preferred to remain anonymous for security reasons, told CNN that he considers himself a living embodiment of the suffering the country is enduring. He conveys weariness, but also determination, in the face of a daily routine marked by medication, food and security shortages.

“I am enduring each and every one of the calamities that we Venezuelans experience,” he asserts. He lives with his wife, and both earn a minimum monthly income. He explains that if they buy medicine, they “starve,” and if they buy food, they cannot afford medical treatment.

The inability to access basic necessities is their greatest concern. Food prices far exceed incomes. “The shelves may be full, but the money isn’t enough,” he said.

His deepest concern is for the future of his family. “I don’t want to leave them this.”

Awaiting the promised improvements

Former opposition lawmaker and economist José Guerra explained to CNN that “in 100 days, one cannot expect to see economic improvements anywhere.” However, he asserts that he has not the slightest doubt that the Venezuelan economy will improve.

In Guerra’s opinion, the initial steps must focus on stabilizing the exchange rate and curbing inflation so that people can begin to feel some economic relief. According to figures from the Central Bank of Venezuela, the annual inflation rate stood at 650% as of March.

For Guerra, the promised increase in the minimum wage — combined with a slowdown in the bolívar’s depreciation against the dollar — could allow citizens to experience a first measure of relief. However, regarding deeper, structural changes, he clarifies that the effects might not be felt until closer to the end of the second half of 2026.

“Economic growth takes longer; it involves making investments and hiring, and that takes time,” he says.

He notes that the Central Bank’s supply of dollars to the private banking sector has increased over the past 100 days, thereby boosting the flow of foreign currency. This measure, he asserts, will have a positive impact, particularly regarding the stabilization of the exchange rate and the narrowing of the gap between the official and parallel dollar rates, addressing one of the distortions currently most detrimental to Venezuela’s economy.

With the second quarter now underway, many Venezuelans are growing impatient for changes to materialize.

But for many, economic prosperity must be accompanied by political change that guarantees long-term stability. Neither of these two things, however, is visible on the immediate horizon.

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