[ad_1]
November 29, 2018 9:23 pm
|
Updated November 29, 2018 21:27
Miguel Velarde, economist, spoke Thursday of the increase in the minimum wage announced by President Nicolás Maduro during a meeting with the Cabinet of Ministers of the Economic Region. According to the expert, the increase was predictable due to the decline in demand in the country.
"It was totally predictable, it is not an extraordinary measure, but no matter how much it will increase, it will never be enough to achieve hyperinflation – the measures taken only accelerate the economic phenomenon further," he explained. Velarde. The national web.
The economist said that raising the minimum wage to 4,500 bolivars would have a knock-on effect on the prices of goods and services sold in the country.
"This will simply raise prices, that is what we can expect in the coming days, or should I say in the next few hours, that will directly affect the purchasing power of citizens. Whenever an announced increase is greater than the country's productivity growth, this translates into an increase in inflation, and Venezuela's productivity indices are very low, "he said. declared.
Velarde questioned Maduro's statements in which he claimed that hyperinflation was slowing down, and pointed out that the government's proposed goal of achieving a "zero budget deficit" does not match the announcements made.
"I have not seen that hyperinflation has begun to slow down, and the indicators of international organizations such as the International Monetary Fund show the opposite.In addition, the increase increases the deficit. I must mention all the measures: bonuses, children's toys, clothes, leashes, all that is fresh, which, added to the fact that foreign exchange earnings have decreased due to the decline in oil production, will only increase the deficit, "he explained.
[ad_2]
Source link
