Venezuela The IMF forecasts 18% of GDP and inflation of 1 000 000% by the end of the year – Observer

The International Monetary Fund (IMF) has updated its economic projections for Latin America by the end of 2018, predicting that Venezuela will face a 18% decline in GDP and a inflation of 1,000,000%. Venezuela is still plunged into a deep economic and social crisis. Real GDP is expected to decline by about 18% in 2018 – the third consecutive year of double-digit declines – due to the significant reduction in oil production and pervasive distortions at the micro level, exacerbated by significant Economic imbalances "According to the IMF

" We expect that inflation will climb by 1,000,000% by the end of 2018, indicating that the situation in Venezuela is similar to that of Germany in 1923 and that of Zimbabwe "at the end of the first decade (19659002) The IMF further emphasizes" that the (Venezuelan) government will continue to record large budget deficits, financed exclusively by the expansion of the monetary base, fueling the acceleration of inflation, while the demand for money continues to decline. "

" The collapse of economic activity, hyperinflation and deterioration (public health, electricity, water, transportation and security), as well as the food shortage at subsidized prices, have generated large migratory flows, which will intensify the effects of contagion in neighboring countries, "he explains in the same document.

However, the IMF provides that" economic activity in Latin America will continue its recovery "after the recovery of domestic demand in 2017, led mainly by consumption, with the investment finally gaining momentum." It is expected that the region as a whole will grow by 1 , 6% in 2018 and 2.6% in 2019, compared to 1.3% in 2017, but below our forecasts for April (2018) ", he added, according to the IMF," although the growth (in Latin America) is accelerating in some countries, the recovery has become more difficult for some large economies as a result of the interaction of global market pressures and vulnerabilities. which amplified them. "

Overall, the exclusion of Venezuela, Latin America and the Caribbean will end in 2018 with growth of 2.3%." Argentina will increase by 0.4%, the Brazil by 1.8%, Chile by 3.8%, Colombia by 2.7%, Mexico by 2.3% and Peru by 3.7% by the end of 2018. [19659006] Continue reading