The political and economic crisis in Venezuela continues to worsen. The price of the country’s major export – oil, has fallen. Venezuela has struggled to pay for imported goods while maintaining socialist economic policies put in place by former president Hugo Chávez. Rolling blackouts, food lines and increasing violence swept all country.
There is a serious scarcity of food and medicines, and there is high inflation, so the little that people can buy is extremely expensive. People depend on what the government imports, and as the credit that the government uses for imports is shrinking, it is more difficult to import.
Also 123,000 people have crossed border shopping. They crossed into Colombia over the weekend to hunt for food and medicine that are in short supply at home.
It was the second weekend in a row that Venezuela’s socialist government opened the long-closed border with Colombia, and by 6 am Sunday, a line of would-be shoppers snaked through the entire town of San Antonio del Tachira. Some had traveled in chartered buses from cities 10 hours away.
Venezuela’s consumer-price inflation is forecast to hit 480% this year and top 1,640% in 2017, according to the International Monetary Fund.“Political uncertainty and the renewed decline in the price of oil has deepened existing macroeconomic imbalances and pressures,”
A lack of hard currency has led to scarcity of intermediate goods and to widespread shortages of essential goods—including food—exacting a tragic toll.
As Caracas extends its declared state of economic emergency, it’s no wonder many economists say the nation will soon have to ask the IMF for a bailout. But it could be complicated, because government severed ties with the IMF nearly a decade ago.