IMF forecasts 10 000 000% inflation for Venezuela

The IMF predicted that Venezuela will record this year 10,000,000% of inflation and 25% of its economy falling, as predicted last week by the World Bank (WB).

"We expect Venezuela's economy to shrink by one quarter in 2019 and by 10% by 2020," the IMF said in the latest edition of its quarterly report on the global economic outlook, released today. In Washington.

If this forecast is confirmed, it will be "a bigger collapse than expected in October 2018", while the agency had estimated a drop of 18% of Venezuelan product for this year.

In addition, the expected decline for the Caribbean country "will weigh considerably on the growth of Latin America", which will reach 1.4% this year and 2.4% in 2020 (0.6 and 0.1 point percentage). less than expected in January, respectively).

The economic progress of the region will also be limited by the deterioration of forecasts in Brazil and Mexico, according to the report reviewed by the EFE news agency.

Moreover, the IMF has ratified its January forecast on the rate of inflation that Venezuela will have this year, which it estimates at 10 000 000% after the close in 2018 with 929.789%.

A month ago, IMF Managing Director Christine Lagarde said the agency would help Venezuela "as soon as the legitimate authorities" in this country ask for it.

Lagarde foresaw that it would be a "monumental work" because Venezuela had not fulfilled its commitments as a member of the IMF for years, including the regular publication of economic statistics.

The IMF has not yet recognized the interim president of Venezuela appointed by Parliament, Juan Guaidó, as some member countries "continue to forge a position" in this regard.

Last Thursday, in its semiannual report on the outlook for Latin America and the Caribbean, the World Bank predicted that Venezuela would have inflation of 10 000 000% this year and a contraction of its economy of 25%.

The World Bank said Venezuela was "by far the worst crisis in the modern history of the region" and warned that conditions in the country "continue to deteriorate" due to falling oil prices and policies "causing serious distortions" in the region. Chavez Government.

Report

An inflation of 10 million percent for Venezuela stands out among the forecasts of the International Monetary Fund for 2019.

The report also indicates that Argentina, for which it forecasts inflation of 30.5%, ranks sixth among the countries where consumer prices show the greatest variation for the rest of the world. year.

Between Venzuela, first in rankingand Argentina are:

• Sudan (56.2%)
• Zimbabwe (40.1%)
• South Sudan (35.9%)
• Iran (31.2%)

The bottom

In last October's report, Venezuela took first place in the rankings. ranking Inflationary year end of the IMF, with 2.5 million percent.

Argentina ranked fifth among the countries with the highest inflation forecasts, with 40.5%.