Rizal Philippines
April 30, 2017
It seems like a flash since April Fools Day.
We may not be aware of it but Venezuela is experiencing great political (social) and economic turmoil.
From Forbes - worsening crisis in Venezuela
From CNN
and few working days )
Economic:
1. Inflation is at 1,600% . It is predicted to be half this year but at 2,000% in 2018.
2. Food and medicine is at short supply, There is even lack of electricity, despite the fact that it sits on top on one of the richest oil deposit in the world. Most of the food is imported.
3. Unemployment is at massive 25%
4. The govt has taken over multinational companies who shuttered down their operations and pulled out of the country.
This is attributed to: socialist policies of predecessor of Pres. Maduro. (Chavez) The only solution is hike wages, and food stamps for people, and resort to rationing.Change of currency, devaluation, more borrowings will mean the country being nearer collapse, (exacerbate the matters)
Oil was nationalized by the govt (it took ownership of oil production facilities from private owners) and accounts for 95% of country/s export and 25% of the GDP. But oil price has taken a beating because of too much inventory, and cracks at OPEC. (Even Saudi has made massive borrowings to make up for shortfall in national budget) and focused its growth target on non oil business
It was concluded by experts that the country is unlikely to make its debt payments this year and will need massive intervention from the IMF.
