Venezuela is in crisis. Its economic activity is collapsing, its inflation rate is skyrocketing and the value of its currency is falling like a stone. People are leaving the country as soon as possible as they perceive that there is no future.
People are starving. The average weight of the population is lower year after year. According to a Survey on Living Conditions (ENCOVI), the average weight of the Venezuelans was 11 kilos lower in 2017 than in 2016 and in 2016, 8 kilos lower than in 2015. That’s a real measure of a deep crisis. According to this survey, in 2014, people out of poverty represented 51.8% of the population. In 2017 it was just 13%. In other words, 87 % of the population was considered as poor.
When the oil price is high, as it was the case before mid-2014, the situation is manageable but as soon as it falls there are no capacities to create new revenues.
The real GDP level is now 40% lower than in 2015 and the inflation rate has an hyper-inflation profile. The cup of coffee with milk, reported by Bloomberg, shows how prices are slipping. The inflation rate is already forecast at 1 000 000% this year. Continue reading