Post by scumbuster on Aug 28, 2020 18:29:38 GMT -5
Venezuela’s Economy Drops an Average 80%
CARACAS – Venezuela’s economy has suffered a massive drop of about 80% from 2013 to 2020, clearly a situation of concern since the South American oil-rich nation has not been struck by either an armed conflict or a natural disaster, Asdrúbal Oliveros, an economist and head of consulting firm Ecoanalítica, said in a radio interview on Wednesday.
“All economic forecasts lead us to think that 2020 is going to close with unprecedented levels of deterioration in our economy due to the preexisting conditions. The economic forecast for Venezuela is not favorable and we are expecting a further contraction of 30% by the end of the year,” Oliveros said.
Besides all the known problems as a result of the harsh economic crisis, the quarantine due to the COVID-19 outbreak has had a highly negative impact in the already beleaguered economic sectors of the country.
“The easing of the quarantine week is having an impact over shopping malls and some establishments. All this amid a low consumption level as a result of lower incomes of consumers.”
Oliveros claimed that today’s economy is only a fifth of what it used to be 6 years ago, and highlighted that the industry sector is the most affected.
“The installed capacity of Venezuela’s industry sector is below 125% at this moment, maybe with the exception of the food and packaging sectors because these two are of high priority. Out of those sectors, the rest is affected because of the imported goods. Importing stuff is more competitive than producing. The situation of the industry is much more critical than people think.”
Oliveros added that the adjustments being carried out by the nation’s leftist incumbent Nicolás Maduro to guarantee the stability of his regime differs from the views of the left wing, for example, by sacrificing the Venezuelan industry to ensure the supply of food, and claimed that the State cannot afford to give citizens a direct subsidy given the current conditions.
“We cannot escape this situation until the political issue is solved,” he concluded.
www.laht.com/article.asp?ArticleId=2494815&CategoryId=10717
CARACAS – Venezuela’s economy has suffered a massive drop of about 80% from 2013 to 2020, clearly a situation of concern since the South American oil-rich nation has not been struck by either an armed conflict or a natural disaster, Asdrúbal Oliveros, an economist and head of consulting firm Ecoanalítica, said in a radio interview on Wednesday.
“All economic forecasts lead us to think that 2020 is going to close with unprecedented levels of deterioration in our economy due to the preexisting conditions. The economic forecast for Venezuela is not favorable and we are expecting a further contraction of 30% by the end of the year,” Oliveros said.
Besides all the known problems as a result of the harsh economic crisis, the quarantine due to the COVID-19 outbreak has had a highly negative impact in the already beleaguered economic sectors of the country.
“The easing of the quarantine week is having an impact over shopping malls and some establishments. All this amid a low consumption level as a result of lower incomes of consumers.”
Oliveros claimed that today’s economy is only a fifth of what it used to be 6 years ago, and highlighted that the industry sector is the most affected.
“The installed capacity of Venezuela’s industry sector is below 125% at this moment, maybe with the exception of the food and packaging sectors because these two are of high priority. Out of those sectors, the rest is affected because of the imported goods. Importing stuff is more competitive than producing. The situation of the industry is much more critical than people think.”
Oliveros added that the adjustments being carried out by the nation’s leftist incumbent Nicolás Maduro to guarantee the stability of his regime differs from the views of the left wing, for example, by sacrificing the Venezuelan industry to ensure the supply of food, and claimed that the State cannot afford to give citizens a direct subsidy given the current conditions.
“We cannot escape this situation until the political issue is solved,” he concluded.
www.laht.com/article.asp?ArticleId=2494815&CategoryId=10717