[ad_1]
Agency
CARACAS.- After a year of hyperinflation totaling nearly a million percent in 12 months, Venezuela has become the Latin American country reports the most damaging inflationary cycle in the history of the region and that still has no sign of stopping.
According to vanguardia.com, product prices in the country of single-product oil are increasing by 3 or 4% per day and every month, the inflation rate reaches or exceeds 200%, situation that leads Venezuelans to live in a eternal tension.
You may also be interested: The crisis leaves 82 babies in the streets of Venezuela
Between 1984 and 1985, lasting 18 months, Bolivia reported a cycle of hyperinflation that added 23,454%while Nicaragua, with 58 months hyperinflationary stage between 1986 and 1991, added 13,109% and Venezuela, with only 12 months, already exceeds 980,000%.
The economist Asdrúbal Oliveros recalled at the forum of the firm Ecoanalítica "Economic Outlook 2019" held this week that a hyperinflation "is the latest state of deterioration of an economy" and that she opens the door to hope by saying that "no there is everlasting hyperinflation", says that in order to get out of it, she must "worsen".
"People think we are in the most difficult part of the hyperinflationary cycle and unfortunately we are in an intermediate phaseIn other words, the acceleration levels of the inflation rate can be much more aggressive, "says the specialist, director of the company.
In addition, according to Oliveros, these levels of inflation, this average rate of 34% per week, "still does not come out of his comfort zone," said the government of Nicolás Maduro, who maintained a control policy of the economy and limited its economic rights. of businessmen and consumers.
Maduro's politics are part of the socialism of the so-called "Bolivarian Revolution" promoted by President Hugo Chávez (1999-2013) and this is why Ecoanalítica's experts point out that these 20 "revolutionary" years have given rise to a systematic "attack" against "economic rights".
"In Venezuela, the private sector does not have the right to produce, the citizen does not have the right to decide what he is going to buy, but all his economic rights are removed," he said. Economist Alejandro Grisanti.
According to the director of Ecoanalítica, an internal conflict did not break out when these rights were abolished, it is the high price of a barrel of oil that allowed the government to import unrestricted foodstuffs and other products. .
Today the picture is very differentthere are no economic rights or foreign exchange to import because of falling oil prices, which has led Venezuela to the greatest shortage of products of all types, mainly drugs and food products.
Falling oil prices are causing a drop in international lending in Venezuela and the closing of financial markets, leading to reduced imports.
"This reduction in imports with the fall in oil prices ends up generating the collapse of the gross domestic product," a collapse that breeds "the vicious cycle of hyperinflation."
The specialists explain that a Venezuelan worker earning a minimum wage must work more than 100 hours can buy a kilogram of cheese for the cheapest presentation.
"People know that the worst thing they can do is save money, keep those assets in liquid form, because they disappear, they disappear overnight with an inflationary process as intense as the one we have. ", said economist Pedro Palma in the same Ecoanalítica forum.
At the same time, the International Monetary Fund estimates that Venezuela will end 2019 with inflation of 10 million% and that the central bank of the oil country – deprived of its autonomy – continues to create inorganic money to finance public spending.
All of this happens while the national oil company Petróleos de Venezuela (PDVSA) produces less and less oil, with a perspective for 2019 of only 500,000 barrels a day – in 2012, it reached 3,000,000 – a society sacked by corrupt people and accustomed to social programs.
Faced with this bleak scenario, economists observe an imminent collapse of the country in 2019 that will bring about a radical change in policies that pave the way for the recovery of economic rights with the necessary and necessary international financing.
Economists point out that the formula of prosperity is this: entrepreneurs can invest and sell their products and citizens have the right to buy what they want.
[ad_2]
Source link
