Tue. Apr 23rd, 2019

inflation of 10,000,000% and a 25% drop in GDP by 2019

inflation of 10,000,000% and a 25% drop in GDP by 2019

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The International Monetary Fund (IMF) has put white on black the deterioration suffered by the Venezuelan economy: The international organism foresees that this year the GDP of the Caribbean country plummeted by 25%, after falling the previous year by 18%. What would imply a cumulative fall of GDP of 60% since 2013. All this, adding a new record of inflation closing 2019 with a rise in prices around 10,000,000%. Estimates that appear in the report "Global Economic Perspectives," which the agency published late on Tuesday. What the institution chaired by Christine Lagarde has called a "humanitarian crisis".

Similarly, the Fund's projections also account for an additional 10% drop in Venezuela's economic activity: "There is a huge humanitarian crisis. A socio-economic crisis, "said IMF chief economist Gita Gopinath. A deterioration that the IMF has related to the collapse of oil production.

Another sign of this deterioration will have its translation in the rise of the Paro rate to 44.3% this year from 35% last year, and that in 2020 could reach the level of 47.9%. Similarly, they highlighted that the Venezuelan situation already constitutes «a considerable burden » for the growth of Latin America and the emerging or developing economies for the next two years.

For its part, experts from the World Bank (WB) have described the situation in Venezuela as "the worst crisis in the modern history of the region". For this organism, «Nothing could prepare the region for the escalation of the economic crisis, social and humanitarian in Venezuela, by far the worst crisis in the modern history of the region, "the authors of their semi-annual report on growth in Latin America have pointed out.

Specifically, in a position similar to that of the IMF, the WB has also predicted that the socio-economic conditions of the country governed by Maduro "continue to deteriorate rapidly." What he has attributed to the fall in the price of oil and what he has termed the "highly distorting Government" policies, a disorderly fiscal adjustment and bad economic management.

In the same way, they have shown themselves to be very critical of the monetization of public sector debt. «These factors have caused hyperinflation, devaluation and a massive contraction in GDP and consumption ", have pointed out the technicians of the World Bank.


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