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The Venezuelan economy is exiled. This has been going on for years, and for the first time, Caracas officially recognizes it. Venezuelan authorities have published figures on inflation and growth in the country, which would have halved in five years. A surprising admission, though still very far from the real situation, even more catastrophic.
What are these figures based on, and what are the authorities of Caracas looking for by publishing them now?
These are the two questions that can be asked from the estimates of the Central Bank of Venezuela, which had not been released for three years.
According to these figures, inflation would have reached more than 130 000% in 2018. This is huge, but the International Monetary Fund estimates it to more than 1 million 300 000% in 2018, and even 10 million% in 2019! Concretely, a kilo of flour costs about half of the minimum wage.
To escape these exorbitant prices and the many shortages of staple foods and medicines, more than three million Venezuelans have left the country since 2015, according to the United Nations.
Caracas also recognizes that the growth of its economy has halved between 2013 and 2018, and that its oil production, the sole base of its economy, has been divided by three in ten years.
In question, according to many economists, the lack of investment in the national oil infrastructure and the lack of diversification of the economy.
President-in-Office Nicolas Maduro points to US responsibility, the economic sanctions they impose on Venezuela and their support for self-proclaimed opponent and president Juan Guaido.