A top International Monetary Fund economist, Robert K. Rennhack, has issued a warning that Venezuela’s economy is likely to collapse in the next 12 to 18 months. According to Corporation Wiki, this South American country’s probably just entered hyperinflationary stage, which will likely result in economic mayhem and chaos.
The IMF predicts that this year inflation will surpass 700%, and could reach 2,200% in 2017. Then, things could get even worse with 2018 inflation going to 13,000% as Miami Herald reports.
These estimates similar to Luque’s were based on previous inflationary spirals in other Latin American nations such as Bolivia, Argentina, and Brazil. A total economic collapse could result in a military coup, something South Americans are quite familiar with.
Due to severe economic difficulties, many citizens are reported by the Latino Show Magazine have found themselves in dire straits. The crime has increased from already high levels. But, even the robbers prefer not to steal the nation’s currency, the Bolivar, as it is becoming increasingly worthless.