Venezuelan economy will contract even more in 2019
Francisco Rodríguez, economist and head of Torino Economics, says that the Venezuelan economy will fall 37% during 2019 and states that the contraction adds to the 45% suffered by the GDP between 2013 and 2018
The economist Francisco Rodríguez said in an interview that the situation in Venezuela is very complex and that if the political crisis is not resolved or an agreement is reached between the two governments in conflict, what today is a humanitarian crisis can turn into famine.
Rodríguez affirms that the Maduro government has a very limited capacity to maneuver to solve the problem of food and medicine shortages. That means that the situation can be worse than Nicolás Maduro believes.
It is worth noting that, according to the specialist, the Maduro administration is the one who in practice can produce oil but Guaidó is the one who could sell it.
Francisco Rodríguez says: “If there is no a basic agreement between the two parties or a resolution to the political crisis, then oil is not going to be sold and it is not going to be produced either and that is where we can have a big drop in income.”
It is timely to emphasize that Venezuela’s income in foreign currency depends on 96% of oil exports affected by the minimum production and the sanctions of the United States.
L.Sáenz
Source: Banca&Negocios
