Venezuela is in a massive financial crisis which isn’t new, but because they continue to print money to cover a growing budget hole, the International Monetary Fund predicts that inflation will hit a whopping 1 million percent by the end of the year.
This will be the third year in a row that the GDP of Venezuela is projected to decline at a percentage in the double digits. This year the projection is 18%.
“We are projecting a surge in inflation to 1,000,000 percent by end-2018 to signal that the situation in Venezuela is similar to that in Germany in 1923 or Zimbabwe in the late 2000’s,” Alejandro Werner, director of the IMF Western Hemisphere department, wrote on the IMF’s blog.
The highest inflation in recorded history was between 1945 and 1946 in Hungary where the daily inflation rate was 207% and prices doubled every 15 hours which resulted in an inflation rate of 41.9 quadrillion.
Prices have risen 46,305% in 2018 alone, according to the opposition-run legislature, which, according to Reuters, “began publishing its own inflation data in 2017 because the nation’s central bank had halted the release of basic economic data.”
Venezuelan President Nicolas Maduro has said that he thinks the country is in an “economic war” and has taken radical steps to control the markets such as sending troops into local markets to make sure prices are regulated accordingly.
To paint a picture as to how bad the economy is in Venezuela, MRCTV’s Brittany Hughes reported that it takes one-fifth of the monthly minimum wage in Venezuela to buy a cup of coffee. There were even reports of surgical patients being required to buy their own scalpels for their surgeries.
The economy has destroyed Venezuela. Newsweek reported that the government is “struggling to import food, fuel and medical supplies from abroad, further undermining low living standards” and there have even been breakouts of measles and malaria epidemics because of lack of medical resources.