(Image credit: This content is subject to copyright.)
The result of Sunday's presidential election in Venezuela was "never in doubt", says Gideon Long in the Financial Times. Nicolas Maduro won "by a mile", thanks to a mixture of coercion including, allegedly, food for votes propaganda and "possibly outright fraud". What is less predictable, is what happens between now and 2025, when his term expires.
The US has already announced a ban on US purchases of debts owed to the socialist government and state-owned oil company PDVSA. The Lima Group of 14 countries, including Brazil and Mexico, refused to recognise the election result and said they would increase scrutiny of sanctioned members of the Venezuelan government. However, analysts think Washington is unlikely to impose a full embargo on Venezuelan oil, not least because its output is "falling so quickly" it is losing relevance.
Since Maduro took over from his mentor Hugo Chvez, who died in 2013, Venezuela's crisis has "intensified" due to lower oil prices, "corruption and a socialist system plagued with mismanagement", say Anthony Faiola and Rachelle Krygier in The Washington Post. Oil production is collapsing. Last year, 25,000 workers at PDVSA 25% of the workforce quit in a mass exodus.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
The economy is in freefall, along with public services. Diseases such as diphtheria are "not only resurfacing but surging". Citizens cannot afford to eat. The minimum wage has dropped by 95% in real terms since 2013, inflation is running at 13,000%, and at least one million have emigrated in the past four years, adds Stephen Gibbs in The Times.
"Little is left of the hope and fury that animated protests against the regime last year," says The Economist. But Maduro cannot defy for ever the laws of economics or the international coalition ranged against him. His victory "may be not only fake, but fleeting".
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Emily has worked as a journalist for more than thirty years and was formerly Assistant Editor of MoneyWeek, which she helped launch in 2000. Prior to this, she was Deputy Features Editor of The Times and a Commissioning Editor for The Independent on Sunday and The Daily Telegraph. She has written for most of the national newspapers including The Times, the Daily and Sunday Telegraph, The Evening Standard and The Daily Mail, She interviewed celebrities weekly for The Sunday Telegraph and wrote a regular column for The Evening Standard. As Political Editor of MoneyWeek, Emily has covered subjects from Brexit to the Gaza war.
Aside from her writing, Emily trained as Nutritional Therapist following her son's diagnosis with Type 1 diabetes in 2011 and now works as a practitioner for Nature Doc, offering one-to-one consultations and running workshops in Oxfordshire.
How does the Lifetime ISA work? Key LISA rules
AJ Bell: a fine British fintech going cheap
