Venezuela's economic crisis worsens as oil prices fall

Citizens of oil-rich country feeling the effects of many economic challenges, especially hyper inflation.

by

    Caracas - Venezuela's President Nicolas Maduro has said that the country's economy is in a state of emergency as oil prices fall to just $33 a barrel, the lowest rate in more than a decade.

    Venezuela needs oil prices to hit $111 a barrel just to break even.

    As a result, inflation continues to rise in Caracas. A recent report leaked from within Venezuela's Central Bank puts the country's inflation rate at 270 percent, marking what economists now consider to be the worst crisis in the oil-rich country's modern history.

    "Venezuela is in the process of hyper inflation, huge fiscal deficit financed by money printing, lack of foreign reserves, and the only commodity of importance in this foreign trade, oil, falling at levels below over the last 11 years," Orlando Ochoa, an economist, told Al Jazeera.

    "It is the perfect storm."

    SOURCE: Al Jazeera


    YOU MIGHT ALSO LIKE

    Revival: The Muslim Response to the Crusades

    Revival: The Muslim Response to the Crusades

    This part of 'The Crusades: An Arab Perspective' explores the birth of the Muslim revival in the face of the Crusades.

    Going undercover as a sex worker

    Going undercover as a sex worker

    A photojournalist describes how she posed as a prostitute to follow the trade in human flesh.

    Africa is not poor, we are stealing its wealth

    Africa is not poor, we are stealing its wealth

    It's time to change the way we talk and think about Africa.