Publish in Special Reports - Wednesday, October 10, 2018
Venezuela's broken economy will likely suffer 10 million percent inflation next year, the IMF predicts. Here capital Caracas. (Photo: Guillermo Ramos Flamerich)
The IMF projects an astronomical 10 million percent inflation in Venezuela.
BY LATINVE X STAFF
Venezuela is set to suffer a 1.37 million percent inflation this year and 10 million next year, according to the International Monetary Fund (IMF).
“Venezuela’s hyperinflation is expected to worsen rapidly, fueled by monetary financing of large fiscal deficits and loss of confidence in the currency,” the fund said in its latest World Economic Outlook report.
Meanwhile, Argentina will also worsen, going from 25.7 percent last year to an estimated 31.8 percent this year – in large part because of the significant currency depreciation, the IMF says.
Latinvex analyzed five-year projections from the IMF and ranks Latin America’s 17 economies by lowest and highest inflation this and the next five years.