Venezuela heads for GLOBAL MELTDOWN: Inflation to SOAR 1000000% just like 1923 Germany
VENEZUELA’S annual inflation will skyrocket by 1,000,000 percent in 2018 in a situation chillingly similar to that of Germany in 1923 and Zimbabwe in the late 2000s, the IMF has warned.
By PAUL WITHERS
Express.co.uk
Wed, Jul 25, 2018
The projection has been made by the International Monetary Fund (IMF), which is also expecting the country’s economy to plummet by 18 percent in 2018 – up from the 15 percent drop it forecasted in April and the third consecutive year of double digit decline.
It cited a significant drop in oil production and “widespread micro-level distortions on top of large macroeconomic imbalances” for this fall.
Alejandro Werner, the director of the department of the Western Hemisphere warned that the projection materialises, Venezuela’s economy will have contracted by 50 percent over the last five years, adding it would be among the world’s deepest economic falls in 60 years.
He said: “Venezuela remains stuck in a profound economic and social crisis.
“We are projecting a surge in inflation to 1,000,000 percent by end-2018 to signal that the situation in Venezuela is similar to that in Germany in 1923 or Zimbabwe in the late 2000’s.
“Real GDP is projected to fall by about 18 percent in 2018—the third consecutive year of double-digit declines in real GDP—driven by a significant drop in oil production and widespread micro-level distortions on top of large macroeconomic imbalances.
“We expect the Government to continue to run wide fiscal deficits financed entirely by an expansion in base money, which will continue to fuel an acceleration of inflation as money demand continues to collapse.
“The collapse in economic activity, hyperinflation, and increasing deterioration in the provision of public goods (health care, electricity, water, transportation, and security) as well as shortages of food at subsidised prices have resulted in large migration flows, which will lead to intensifying spillover effects on neighbouring countries.”
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