International Monetary Fund warns of the collapse of the Venezuelan economy
18/7/2018 12:00 am
[rtl]Washington / Follow-up morning
The International Monetary Fund (IMF) has said Venezuela is in a state of "economic collapse" as the country suffers from unprecedented hyperinflation since the middle of the last century.
Despite the rise in oil prices benefiting most exporting countries, the IMF sees an increase in the contraction of the Venezuelan economy, which was forecast to fall 15 percent in April, with inflation this year reaching 14,000 percent.
"It is very difficult to exaggerate the magnitude of the turmoil in the Venezuelan economy," said IMF analyst Maurice Obstfeld.
"We have already seen a significant contraction in the coming years in Venezuela and we have increased our estimates of the extent of the recession," he told reporters.
"We see an excessive inflation that is only equal to Zimbabwe and the hyper-historical hyperinflation between the two world wars," he said.
The International Monetary Fund (IMF) has not released a new forecast for Venezuela in the second quarter update on the outlook for the global economy, which provides a specific set of estimates.
"The wave of exiles from Venezuela has had an impact on neighboring economies, although there is no language barrier," he said.
"Just like in other parts of the world, there is a great challenge to accommodate these immigrants," he said.
"Venezuela's oil production has deteriorated to new levels that the country has not seen for 30 years, reaching 1.5 million bpd in June," OPEC data showed.
Oil sales account for 96 percent of Venezuela's revenue, but a lack of foreign currency has led to economic paralysis that left the country seriously under-nourished.
The government of Socialist President Nicolas Maduro has asked the National Oil Company to increase production of the country with the world's largest crude oil reserves.[/rtl]