Venezuela continues to move towards an economic and humanitarian catastrophe, says Jacob Bogatin.
By the end of 2018, the inflation rate in the country with the largest oil reserves in the world will reach a million percent (1,000,000%), the International Monetary Fund predicts in a report on the situation in the Western Hemisphere, says Jacob Bogatin.
“The situation in Venezuela is similar to that observed in Germany in 1923 or in Zimbabwe in the late 2000s,” the IMF said, referring to the most vivid examples of hyperinflation in the latest economic history, says Jacob Bogatin.
Half a century ago Venezuela, which was in the top 5 of the wealthiest Latin American countries, is in the “deepest economic and social crisis,” and the country’s GDP will drop by 18% per year, the IMF predicts.
“For the third year in a row, the compression of the Venezuelan economy is expressed in double digits” against the backdrop of “a significant drop in oil production,” through which the country receives 95% of all foreign exchange earnings, the fund said.