Economy 09-10-2018

The IMF forecasts that hyperinflation in Venezuela will rise to 201,000 in 2019

The International Monetary Fund (IMF) estimates that hyperinflation in Venezuela this year could reach 1.370.000%, and in 2019 it would rise to 10,000,000%, according to the October edition of the report of the organization Perspectives of the World Economy.

"The hyperinflation of Venezuela is expected to worsen rapidly, due to the monetary financing of the important fiscal deficits and the loss of confidence in the currency," the IMF said.

The report points out that the Venezuelan economy continues to deteriorate for the fifth consecutive year, "after the fall of 14% registered in 2017."

"The projections suggest a reduction in real GDP of another 18% in 2018 and 5% in 2019, caused by the collapse of oil production and political and social instability," he says.

He adds that between 2013 and 2017 the GDP per capita in Venezuela fell by more than 35%, and is expected to "fall by almost 60% between 2013 and 2023."

According to the IMF study, in Mexico, inflation would continue to fall: it would stand at 4.8% in 2018 and "converge toward the central bank's target rate of 3% in 2020, in a context of restrictive monetary policy."

"In Brazil, on the other hand, inflation will accelerate to 3.7% in 2018 and to 4.2% in 2019, as monetary policy maintains a flexible stance and inflation of food prices picks up after a reduction remarkable product of an exceptional harvest in 2017, "he says.

For its part, in Argentina, inflation could reach 31.8% in 2018, "because of the significant depreciation of the currency, and would remain at a similar level (31.7%) in 2019", according to with the data of the organization.

Sputnik

 
Consulte a nuestros especialistas