Dictatorships, wars and extreme crises: which are the only 6 countries in the world to have more inflation than Argentina

Despite the fact that inflation slowed slightly in April from the peak in March and stood at 4.1%, according to the National Institute of Statistics and Censuses (Indec) last week, Argentina was ranked 175 out of 181 in the global inflation rankings, just behind Venezuela, Sudan, Zimbabwe, Lebanon, Suriname and Iran. They are all countries at war, involved in strong political, economic and civil crises ruled by dictatorial regimes.

This emerges from a survey by the consulting firm Invecq published by its director Esteban Domecq.

According to the analysis, There are 158 countries in the world with annual single-digit inflation and 120 countries with less inflation in a year than Argentina in a month. In this sense, the report pointed out that annualized inflation in the last quarter reached 63.4% and continues to accelerate by 23.2% in June 2020.

The first place in the world inflation ranking is held by Venezuela, which in March reached 3012% annualized.

Behind appears Sudan, with an inflation of 341%; follow it Zimbabwe, with an increase of 194% to April; then appears Lebanon, with 158% annualized in March; Suriname, with 50.4% to April, Iran, with 49.5% Yes Argentina ranks 175th out of 181 countries, with inflation of 46.3%.

In most cases, these are countries in conflict that are going through dictatorial processes and where certain rights are suspended.

In the case of Venezuela, Cumulative inflation in 2020 was 2,959.8%, according to that country’s Central Bank (BCV).

It is the country which records the worst figures of all economic indicators, within Mercosur and in the world. ANDl GDP in 2020 fell by 25% according to the IMF and, unlike the rest of the countries which expect a rebound, it should experience a further decline, of 10%, this year. The unemployment rate was also 35.5% in 2020 and poverty reached 80%.

After suffering a persistent devaluation of its currency in recent years, the exchange rate in Venezuela is 1,850,656 bolivars and the country risk has reached an outrageous 25,780 basis points.

Meanwhile, Sudan, after three decades of international isolation, is going through a deep economic crisis, which has been made worse by the pandemic. The country is going through a process of transition after the revolution that erupted in December 2018 and overthrew the regime of Omar al Bashir, starting a military dictatorship suspending the Constitution.

On the other hand, Lebanon, a country in the Middle East, is experiencing almost constant instability, due to wars and internal or external conflicts.

Iran in a country at constant war which presents the characteristics of a presidential and theocratic democracy led by an autocratic “supreme leader”. The Iranian regime is characterized as authoritarian due to a significant lack of freedoms and violations of human rights.

While Suriname has an economy dependent on other countries. Its main trading partners are the Netherlands, the United States and the Caribbean countries.

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According to Indec, in the first four months of the year, the cumulative price increase reached 17.6%. In this way, he put pressure on the target set by the government, which expects a rate of 29% throughout the year.

The figure released by the statistical agency in April is in line with expectations held privately by the executive and the estimates of consultants, after the 4.8% recorded in March, which was the highest index since Alberto Fernandez assumed the presidency.

“The monetization of the economy of the previous year, resulting from the fiscal domination imposed by the pandemic, has begun to reveal its contraindications in an economy that still has many challenges to overcome», Underlined the consultant.

During the last twelve months, The sector that has by far recorded the largest price adjustments is clothing and footwear, with an increase of almost 80% since April last year. Transportation (52.6%), influenced by increased fuel, home equipment and maintenance (52%) and recreation and culture (50.8%), came second rank.

According to private projections, From this month, inflation could face a trajectory of slight monthly decline that would bring it closer to 3.5% in May and 3% since June., with a downward slope at least until September, the date of the primary legislative elections.

Inflationary dynamics of recent months it has marked a notable acceleration since October, when the price index exceeded 3% per month and did not cross this floor. Data for this month (3.8%) were followed by November (3.2%), December and January (4%), February (3.6%), March (4.8%) and the last April , 4.1%.

There are 158 countries in the world with annual single-digit inflation and 120 countries with less inflation in a year than Argentina in a month.

In this context, one of the explanations attempted by the government for the price situation, and in particular for foodstuffs, was linked to the increase in international prices basic products, a concern that the Minister of Productive Development expressed again yesterday Matías Kulfas.

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