The IMF predicts a 25% fall in the Venezuelan economy in 2019 and the equivalent of countries in civil war

The International Monetary Fund (MFIs) has deepened the planned contraction in Venezuela up to 25% in 2019, up from 18% calculated three months ago, while maintaining its inflation forecast at 10 000 000%, in its latest forecast released Tuesday.

"We expect the Venezuelan economy to shrink by one quarter in 2019 and by 10% in 2020; a bigger collapse than expected in October 2018, which is a major drag on the growth of the region", experts from MFIs in the report "World Economic Outlook".

In regards to unemployment, the Fund has indicated that it will reach 44.3% of the active population in the current year and will reach 47.9% by 2020, neighboring levels registered in Bosnia and Herzegovina in 1996, at the end of the three-year war. By comparison, the economic contraction is also the strongest in the world since the beginning of the civil war in Libya in 2014.

For its part, the MFIs maintained its inflation forecast at 10 000 000% for this yearthe same calculation three months ago. The index has already increased by 929.789% in 2018, according to the latest badysis of the multilateral institution.

In this sense, the Fund pointed out that the worsening of the Venezuelan crisis, aggravated by the deterioration of the forecasts Mexico and Brazil, hindered 2019 development forecasts for Latin America, which will grow 1.4% this year and 2.4% in 2020six and a tenth less than expected in January.

A month ago, the CEO of the Fund, Christine Lagarde, foresaw a "monumental work" for the time when the institution she will lead will economically badist Venezuela, although it does not have any money. did not specify any term.

Lagarde argued that for a long time the Fund had performed "none of the audits" that the organization performs with all members on an annual basis. It will therefore be necessary to do "a lot of diligence" in a "very fast" way.

In addition, the Chief badured that the MFIs will badist Venezuela "as soon as the legitimate authorities of this country" ask for help, without mentioning names.

The MFIs ensured that still badyzes the recognition of the president of the National Assembly, Juan Guaidó, at the head of Venezuela, whereas some member countries "continue to position themselves" in this respect.

Guaidó was proclaimed interim president of Venezuela on Jan. 23 and received support from the United States and most countries of Europe and Latin America, who urged Nicolás Maduro, that "we will not go back. they consider illegitimate, to call elections.

The report is published at the beginning of the spring meeting of the MFIs and the World Bank (WB), which brings together world economic leaders from its 189 member countries in the US capital and will continue until the weekend.

(With information from EFE)