By the end of the year inflation in Venezuela will reach one million per cent
Moscow. July 23. INTERFAX.RU — Inflation in Venezuela by the end of the year may reach one million per cent, says the IMF report presented on Monday by the Director of the Department of Western hemisphere Alejandro Werner.
It is estimated that the country’s economy this year may show the decline to 18%, while in April the forecast was 15%. It is noted that for Venezuela it will be the third year in a row, when the rates of decline are calculated in the double digits.
The IMF expert compares the gravity of the situation in Venezuela with the situation in which Germany found itself after the First world war. If the latest predictions are correct, in five years of crisis, Venezuela’s economy will shrink by 50%; this is the most significant economic downturn in the past 60 years.
Werner notes that a catastrophic decline in economic activity, hyperinflation and deteriorating situation of the population in Venezuela will have a negative impact on the situation in neighbouring countries.