“Will Iran become the next Venezuela?” Almost every Iranian has faced this question. In truth, Iran has not only become the next Venezuela, but the acceleration of its economic collapse is much higher than that of Venezuela.
The economic situations of Venezuela and Iran can be compared by examining the inflation rate and the conversion rate of USD to Bolivars (Venezuela currency) and the inflation rate and conversion rate of Iranian Rials to U.S. Dollars.
Almost all of Venezuela’s income is from the oil industry. In 2015, the oil-dependent economy contracted 5.7% and the inflation rate, which was at 57% in 2014, suddenly reached 181%. In 2016, oil revenues fell by 12.7%, and Venezuela's non-oil revenues fell by 19.5%, which in turn brought the inflation rate to 254%.
In 2017, this trend continued. The inflation rate reached 741%, and now a country that once was prosperous because of high oil prices suddenly faced economic disaster. Venezuelans reduced their meals, formed long queues for food and toilet paper, and were forced to eat garbage from dumpsters.