In Venezuela the inflation rate this year will continue to grow and at the end of the year could reach 10 million percent.
“The acceleration of hyperinflation to level, which in 2018 was close to 2 million percent, will go to the level that in 2019, if I remember correctly, should be around 10 million percent”, – said the Director of the Department of West hemisphere of the International monetary Fund Alejandro Werner.
Venezuela in recent years are experiencing an acute crisis accompanied by devaluation of the national currency and hyperinflation. According to the parliamentary Committee on Finance, inflation by the end of 2018 amounted to about 1.7 million percent.
The IMF experts compare 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.
The crisis in Venezuela began after the death of Hugo Chavez. In 2013 a new President was elected his colleague Nicolas Maduro. However, by the beginning of 2014 in the country has worsened the economic problems. And in 2017, 93% of the population have complained of chronic malnutrition. All this led to sharp criticism of the ruling regime and a political crisis.
Acting Venezuelan President Nicolas Maduro has accused the current US government and announced the severance of diplomatic relations with Washington. Russia has recognized Maduro as the legitimate President of Venezuela.
Reuters reported that in Venezuela for the protection of the President Maduro went about 400 Russian mercenaries from PMC “Wagner”, however in the Kremlin deny it.