Post by scumbuster on Dec 6, 2020 8:33:09 GMT -5
Economist: Venezuela’s Inflation Forecast to Hit 1,000% in 2021
CARACAS – Hopes for an economic recovery in Venezuela continue to fade as a new forecast on inflation will make it harder for its citizens to see a speck of light at the end of the tunnel.
Asdrúbal Oliveros, a renowned Venezuelan economist and head of Caracas-based consulting firm Econoalítica, said in a radio interview on Wednesday that Venezuela will continue to evidence “sky-high inflation” in 2021.
“Our inflation outlook is 1,000% for next year, which is by all means exaggerated if compared with other countries,” he told local radio station Unión Radio after giving his inflation forecast for November which is estimated at 70%.
However, Oliveros pointed out that, despite his gloomy forecast, there might be an increase in imports to $8 billion as a result of an economic opening up to be sponsored by the State and a recovery in remittances in 2021 that will help increase the inflow of foreign exchange by 26%.
Likewise, some economic sectors may experience growth despite the hyperinflationary cycle and the fact that 2020 has been “catastrophic” for Venezuela and the rest of the world. “The country’s economy has dropped about 30% and we forecast that it will continue to contract albeit at a slower pace.”
Oliveros underscored the need for improving productivity in order to see a recovery in wages and salaries since, according to estimates, it is not possible to pay them in US currency within the public administration because state revenues would be insufficient.
Oliveros added that the leftist government of Nicolás Maduro is setting things up for tax collection in foreign currency, making it clear that prices won’t go down despite the greenback’s downtrend because “it’s not viable in a country amid uncertainty.”
www.laht.com/article.asp?ArticleId=2497335&CategoryId=10717
CARACAS – Hopes for an economic recovery in Venezuela continue to fade as a new forecast on inflation will make it harder for its citizens to see a speck of light at the end of the tunnel.
Asdrúbal Oliveros, a renowned Venezuelan economist and head of Caracas-based consulting firm Econoalítica, said in a radio interview on Wednesday that Venezuela will continue to evidence “sky-high inflation” in 2021.
“Our inflation outlook is 1,000% for next year, which is by all means exaggerated if compared with other countries,” he told local radio station Unión Radio after giving his inflation forecast for November which is estimated at 70%.
However, Oliveros pointed out that, despite his gloomy forecast, there might be an increase in imports to $8 billion as a result of an economic opening up to be sponsored by the State and a recovery in remittances in 2021 that will help increase the inflow of foreign exchange by 26%.
Likewise, some economic sectors may experience growth despite the hyperinflationary cycle and the fact that 2020 has been “catastrophic” for Venezuela and the rest of the world. “The country’s economy has dropped about 30% and we forecast that it will continue to contract albeit at a slower pace.”
Oliveros underscored the need for improving productivity in order to see a recovery in wages and salaries since, according to estimates, it is not possible to pay them in US currency within the public administration because state revenues would be insufficient.
Oliveros added that the leftist government of Nicolás Maduro is setting things up for tax collection in foreign currency, making it clear that prices won’t go down despite the greenback’s downtrend because “it’s not viable in a country amid uncertainty.”
www.laht.com/article.asp?ArticleId=2497335&CategoryId=10717