Of Venezuela’s GDP will shrink by the end of 2017 at 12%, inflation will reach nearly 653% in the current year, and in 2018 it will exceed 2300%. These forecasts are contained in the report of the International monetary Fund (IMF).
“Strengthening the political crisis in Venezuela is a serious hindrance to economic activity, which is projected to decline by more than 10% in 2017, as a consequence, will decrease oil production and aggravated the uncertainty,” reads the IMF report, extracts from which leads RIA “Novosti”.
Compared to other Latin American countries Venezuela is in fact the only negative economic growth this year and next year. The Fund notes that the whole region economic growth for the year is estimated at 1.2%. In 2016, in addition to Venezuela, the GDP decline was also noted in Brazil, Argentina and Ecuador, but in 2017 and 2018 projections for they were only of Venezuela.
Compared to the 2016 inflation in Venezuela, according to IMF experts, will grow by more than nine times (from 254% to more than 2300%).
In the spring, the Fund predicted that the economic recession in Venezuela will lead the country to the inflation rate of 720% in the current year and in 2068% in 2018. The situation in the country has become severe due to shortages, galloping inflation and falling government revenues due to lower oil prices, as well as the mass protests against the policies of President Nicolas Maduro.