Venezuela’s economy is in a pathetic condition for past few years and on Tuesday the country’s Central Bank released statistics revealing gross domestic product in the third quarter of 2018 contracted 22.5 percent over the prior year.
According to the records GDP has been declining since beginning of 2014. Between the third quarter of 2013 and third quarter of 2018 the GDP has contracted 52 percent.
This mean in last five years Venezuela’s economy size has reduced by half and price inflation has gone out of control.
A new data reveals in 2018 the inflation rate was 130.060 percent.
Central Bank added in the report the inflation rate was highest in the recent history of Venezuela. The oil exports too dropped significantly.
Oil production in Venezuela has collapsed drastically over the years due to underinvestment and current political crisis.
Earlier in May Venezuela sold about $270 million in gold from central bank reserves to UAE and Turkey.
People with knowledge of the matter said the central bank reserves are now down to a 29-year low of $7.9 billion and the move of President Nicolas Maduro is to skirt US Treasury sanctions.
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