News Daily Spot: Venezuela is the country with the highest inflation in the world in 2015

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Venezuela is the country with the highest inflation in the world in 2015

Venezuela will close 2015 "with the highest inflation in the world", around 160%, which is behind "the will of major change" recorded in the recent legislative elections, said Efe Alejandro Werner, director of Western Hemisphere Department IMF.


"In Venezuela, what we are seeing is a social situation in which economic problems are leading to a major change will" Werner said in an exclusive interview with Efe at the headquarters of the International Monetary Fund (IMF) in Washington, in reference to the recent victory of the opposition in legislative elections last Sunday.

The Fund official said that "our database of global projections puts Venezuela as the highest inflation in the world in late 2015, around 160%."

"A triple-digit inflation near hyperinflation levels, distorts almost all economic decisions, generating shortages and economic situation of lawlessness," said Werner, describing the current situation in the Latin American country.

The latest forecasts of the body to Venezuela forecast an economic contraction of 10% in the country at the end of 2015.

"If you look indicators: double-digit budget deficit, the highest inflation in the world, shortages of commodities, currencies extreme shortage, total disconnection with the international economy. Clearly, it is a time when important changes to restore some normalcy required, "he added.

However, he said that Venezuela "can go alone" without having to resort to international assistance, and to not build a "great debt" and its problems stem from "a domestic situation of excess expenditure which is financed by primary emission (central bank) ", to which was added the sharp fall in oil prices.

"A good policy will help to restore order. We're not seeing a funding crisis in an economy that had access to markets and accumulated liabilities and expire today, and search creditors, "Werner, who recalled that the body does not have relations with the Venezuelan government for years said.

The South American country, with President Hugo Chavez in the presidency, in 2007 ordered the withdrawal of Venezuela from the IMF and the World Bank (WB).

In Venezuela there is a change control system since 2003 that prevents the free access to foreign exchange and requires individuals and businesses to channel their requests through several mechanisms.

This change control has given way to a parallel market, where the dollar is five times the official rate, one of the factors behind the high inflation that records the country, experts say.

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