Economic collapse in Venezuela: the IMF foresees an inflation of 10,000,000% in 2019

The free fall of the Venezuelan economy shows no signs of improvement, according to the latest forecasts of the International Monetary Fund (IMF), which warns of the risk of a loss of 60% of wealth per capita between 2013 and 2023, a figure that resembles in the recent history of impoverishment suffered by the population of countries at war or immersed in revolutionary processes, while hyperinflation in the South American country will reach 10,000,000% by 2019.

According to the latest forecasts of the Fund, collected in its report 'Perspectives of the World Economy' (WEO for its acronym in English), the GDP of Venezuela will register this year a contraction of 18%, extending to five years its fall, after the setback of 14% observed in 2017, while next year the recession could be 5% as a result of the collapse of oil production and political and social instability.

In the longer term, the IMF forecasts that the Caribbean country will continue in recession throughout the entire horizon of its projections, registering an annual GDP drop of 1.5% in 2023.

In this way, the Venezuelan labor market will deepen its deterioration during the next two years, with an unemployment rate of 34.3% this year and 38% in 2019, which will reach 45.2% by 2023.

Hyperinflation will worsen
In terms of prices, the IMF notes that Venezuela has made a monetary redenomination by removing five zeros from the 'bolívar fuerte', replaced by the 'sovereign bolívar', equivalent to 100,000 bolívares fuertes.

"A rapid worsening of Venezuela's hyperinflation is expected due to the monetary financing of huge fiscal deficits and the loss of confidence in the currency," says the IMF in its analysis of the situation in the country, whose data have been excluded from the global calculation of the Latin American region to avoid distortions. Thus, the Venezuelan hyperinflation will reach 1,370,000% in 2018 and will jump to 10,000,000% next year.

On the other hand, the IMF calculates that the per capita wealth of Venezuela has fallen "more than 35%" between 2013 and 2017 and forecasts the loss of around 60% of GDP per capita between 2013 and 2023, a figure that would place impoverishment planned for Venezuela at levels similar to that registered by countries at war or revolutions between 1960 and 2017, including the cases of Iran between 1976 and 1981, Iraq between 1999 and 2003, Azerbaijan between 1990 and 1995 or Libya between 2010 and 2011.
https://www.economiahoy.mx/economia-eAm-mexico/noticias/9439676/10/18/Colapso-economico-en-Venezuela-el-FMI-preve-una-inflacion-del-10000000-en-2019.html