Venezuela's economic crisis worsens as oil prices fall | News | Al Jazeera

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

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    The State of Lebanon

    The State of Lebanon

    Amid deepening regional rivalries what does the future hold for Lebanon's long established political dynasties?

    Exploited, hated, killed: The lives of African fruit pickers

    Exploited, hated, killed: Italy's African fruit pickers

    Thousands of Africans pick fruit and vegetables for a pittance as supermarkets profit, and face violent abuse.