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November 19, 2019

Venezuela lost half of its economy since 2013

Venezuela economy crisisVenezuela lost half of its economy since 2013 and the situation is getting worse. The unemployment in the country is expected to reach 30% and prices of all kinds of goods will grow by 13,000% this year, according to new data published by the International Monetary Fund (IMF). The economists are not particularly optimistic about the future of Venezuela.

“The Venezuelan crisis continues”, said the IMF economist Alejandro Werner, adding that inflation this year is growing dizzyingly because of “the loss of confidence in the country’s currency”.

This year will be the third consecutive double-digit contraction of Venezuela’s gross domestic product. The country’s GDP shrank 16% in 2016, and 14% in 2017, and is expected to register a 15% drop this year. Venezuela is in a deep economic, political and humanitarian crisis driven largely by government policy. In the country there is a shortage of food and medicine, people are digging for food in the garbage cans.

Thousands of Venezuelans leave the country, and the local currency has almost no value. The government has announced debt defaults and world leaders call president Nicholas Maduro a dictator.

It is not expected any change in the political environment in the country. The Maduro administration has announced this week that it will hold presidential elections in the spring. He has already excluded opposition leaders from participating in the election, and it is unclear whether anyone will have the right to stand up against him. At the same time, the economy shows no signs of recovery.

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