Econ country case studies

Venezuela inflation

Highest inflation rate in the world

Hyperinflation over 1 mil%

Due to govt failure: printing vast amounts of money to plug fiscal deficit→ as money supply rises, inflation also rises

Venezuela GDP

As global oil prices collapsed, exports suddenly fell, sudden fall in demand triggered a recession

GDP shrank by 75%

Venezuela’s institutions

State-led market

High levels of corruption and authoritarianism

Venezuela’s development

High levels of poverty and malnutrition

Venezuela national debt

over $150bn

Venezuela exchange rate

Abandoned the bolivar for the US dollar due to hyperinflation

Venezuela population demographic

High birth rates

Young population

Major emigration crisis

China inflation

1.2%

China GDP

Past few decades, sudden large growth of GDP

fuelled by capital investment and export-led growth and subsidisation of fledgling industries

China’s institutions

Authoritarian

Mixed economy→ as they have shifted from more communist to more capitalist, greater GDP growth

China’s development

0.42→ 0.8 in HDI (1990→ 2026)

China national debt

high levels of debt

China exchange rate

uses a managed floating system

Depreciation of the RMB to maintain competitiveness

China population demographic

Around 70% of the population live in urban areas now

notable gender gap→ more men than women

Labour force is shrinking→ low fertility rates, growing retired demographic