http://www.bloomberg.com/news/articles/2015-04-10/bofa-sees-venezuelan-inflation-spiraling-to-as-much-as-200-
Venezuela's inflation rate, already high, is expected to rise even higher in the coming months, potentially exceeding 200 percent. Meanwhile, the economy is predicted to shrink at 4% over the next year. The economy, which was already doing poorly, has been adversely affected by the falling oil prices, which is a major import for the country.
Meanwhile, foreign exchange reserves have fallen 15%. While Venezuela still possesses the assets to pay off it's debts, those assets are rapidly falling. The economy is in dire straits now, but if an effective solution is not found, the economy could continue tumbling into complete failure.
Venezuela's inflation rate, already high, is expected to rise even higher in the coming months, potentially exceeding 200 percent. Meanwhile, the economy is predicted to shrink at 4% over the next year. The economy, which was already doing poorly, has been adversely affected by the falling oil prices, which is a major import for the country.
Meanwhile, foreign exchange reserves have fallen 15%. While Venezuela still possesses the assets to pay off it's debts, those assets are rapidly falling. The economy is in dire straits now, but if an effective solution is not found, the economy could continue tumbling into complete failure.
1 comment:
President Maduro began a campaign to blame the American government for Venezuelan economic troubles earlier this year. Over the last several months his popularity has increased because of these claims, but it still is well below 50%. With elections coming up in November, Maduro is going to need a miracle to stay in office because blaming America will not be enough.
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