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Nov 03, 2017

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In Venezuela, Cooking With Firewood as Currency Collapses

But as the government tries to stifle the opposition and regain a firm grip on the nation, the country’s economic collapse, nearing its fourth year, continues to gain steam, leaving the president, his loyalists and the country in an increasingly precarious position. Petróleos de Venezuela, the state oil company that is the government’s main source of income, reported in August that its revenue fell by more than a third last year amid production declines — part of a long collapse that chokes the country’s supply of dollars needed for imports of food and other goods. The falling production mirrors trends in nearly every product that the nation depends on, from potatoes and corn to automotive manufacturing, with fewer than 1,100 cars made in the country through July this year. Gustavo Misle, 80, in Caracas with sign that reads “going hungry.” Mr. Misle, a retired university professor, has seen his monthly pension dwindle to a few dollars. Credit Meridith Kohut for The New York Times And while production falls, prices continue to rise with inflation. The price of food in Venezuela increased by more than 17 percent in July alone, according to the main nongovernmental group that tracks inflation, aggravating a food crisis that had already shattered the image of Venezuela, an oil-rich nation that, until recent years, was the economic envy of many countries in the region. “This is unprecedented,” said Ricardo Hausmann, an economist at Harvard University and former Venezuelan planning minister, contending that the economic declines are worse than those in Mexico during http://fotina23fa.innoarticles.com/deciding-on-clear-cut-systems-of-topickeyword its economic collapse in the 1990s, Argentina in the 2000s and Cuba after the fall of the Soviet Union. In one nine-day stretch in late July and early August, the price of the bolívar, the national currency, fell by half against the dollar on the black market, cutting earnings for people who make the minimum wage to the equivalent of just $5 per month. Even though the government has been raising the minimum wage relentlessly, it has not nearly kept up with inflation, leading to an 88 percent drop in earnings over the past five years for the workers who rely on it, Mr. Hausmann said.

For the original version including any supplementary images or video, visit https://www.nytimes.com/2017/09/02/world/americas/venezuela-nicholas-maduro-inflation-economic-collapse.html

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