Venezuela's Inflation to Reach 1 Million Percent, IMF Forecasts
- IMF compares Venezuela with Germany in 1923, Zimbabwe in 2000s
- Venezuelan economy seen contracting 18% this year, 5% in 2019
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Venezuela’s inflation will skyrocket to 1 million percent by the end of the year as the government continues to print money to cover a growing budget hole, the International Monetary Fund predicted on Monday.
The crisis is comparable to that of Germany in 1923 or Zimbabwe in the late 2000s, said Alejandro Werner, head of the IMF’s Western Hemisphere department. He forecast the economy to shrink 18 percent in 2018 -- the third consecutive year of double-digit contractions -- as oil production falls significantly.