IMF: Venezuela’s inflation rate will be 1,000,000% by the end of the year
The IMF has projected inflation of the Venezuelan Bolivar to reach 1 million percent by year end 2018, comparable to rates reached in Germany after World War I and more recently in Mugabe’s Zimbabwe. This will be combined with a projected 18% decline in GDP, its third straight year of double-digit decline, and a per capita GDP decline to under $10,000. The IMF analysis continued to state the the crisis will continue with President Maduro’s victory in May that will keep him in power into 2024. “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.” Venezuelans continue to flee the country, with Colombia hosting an estimated 870,000 Venezuelans, as its government blames the U.S. and other countries for the economic situation.