Venezuela's terrifying hyperinflation -- already the worlds highest -- might hit the mind-boggling figure of 10,000,000% this year as prices continue to soar and the incompetent government of dictator Nicolas Maduro remains incapable of taking decisive action.
The International Monetary Fund (IMF) projected to 10,000,000% inflation rate based on the untrammeled skyrocketing of prices every month. Venezuela entered a period of hyperinflation in November 2016.
"Yes, 10 million percent, because prices in Venezuela are doubling or tripling every month," said Alejandro Werner, director of the Western Hemisphere Department for the IMF. "And that, when you take it to 12 months, generates an exponential inflation rate."
He said the Venezuelan economy collapsed by 18% in 2018, for a total contraction of 50% over the past four years. Werner said the IMF forecasts Venezuela's much too battered economy to sink by another 5% this year.
The World Bank has almost the same hyperinflation estimate for Venezuela. Jorge Familiar, the World Bank's vice-president for Latin America and the Caribbean, affirmed the Bank's data is very similar to the IMF figures.
"I think that we don't have a precedent of any country that has had these levels of inflation for such a long time. I, at least, can't remember any," Familiar replied when asked how long any country can withstand an inflation rate in the millions without being ripped-apart by complete economic and social chaos.
Hunger and violence will escalate even further in Venezuela, and millions more will flee the country to join the more than three million that have already escaped ensuring their survival elsewhere. Venezuela is one of the most violent countries on Earth: one person is murdered in Venezuela every 21 minutes.
Inflation in Venezuela remained high throughout the presidency of the late Hugo Chávez, dictators and an incompetent economic manager who prioritized military strength over economic development. The inflation rate hit 69% in 2014, the highest in the world. Inflation thereafter skyrocketed: to 181% in 2015; 800% in 2016; 4,000% in 2017 and 1,698,488% in 2018.
One result of the immense poverty gripping Venezuela as a result of its untrammeled hyperinflation is population flight. A Brookings Institution study released in December 2018 estimates that 8.2 million more Venezuelans will flee the country over the next two to three years.
Luis Almagro, secretary general of the 34-nation Organization of American States, said the Venezuelan exodus may be even larger than estimated in the Brookings report.
He said the 8.2 million figure may end up being too low, considering the magnitude of Venezuela's crisis. "There may be up to 10 million Venezuelans who will have to abandon that country over the next four years," he noted.
That figure represents a third of Venezuela's population of 31.6 million persons.
Experts said Venezuela's humanitarian crisis will directly or indirectly hurt every country in South America. It remains Latin America's most urgent problem. Unfortunately for Venezuela, Mexico and Spain have suggested they will not join international diplomatic efforts to restore democracy in Venezuela.
