Venezuela News Article Summary
Venezuela’s annual inflation rate has risen to a projected 57.3 percent in February, according to Venezuela’s Central Bank. The inflation has been caused by economic disruption since the death of President Hugo Chavez. In February, and continuing to the present, violent demonstrations by opposition groups has slowed down day to day economic activity. The protesters have blocked major roads and clashed with police forces. Due to the protests, there has been an acute shortage of staple consumer goods. This has driven up the prices of essentials such as food and clothing. The cost of health and recreation services has risen 4.1 percent from January. The cost of hotels and restaurants has risen 3.9 percent. Since the buying power of the currency is reduced, there has been steep inflation.
Protesters are demanding the resignation of the current president, Nicolas Maduro. The protesters are opposed to Maduro’s socialist economic policies, which include currency controls and minimum selling prices.
The central bank has made the following comments: “These results came in the context of the economic war which had consequences for the distribution of consumer goods, limitations on the workday, and restriction of the hours of operation of commercial establishments.”
The central bank’s comments echo the sentiments of the Venezuelan government, which has stated that opposition forces and foreign interests from Washington are deliberately bringing the country to a standstill to force the President to resign.
Possible Business Issues: Venezuela has become a very unstable place to do business. Major roads, especially in Caracas, have become blocked by protesters. Banks and commercial businesses have had to reduce their hours, and the average workday has become shorter. The protests have been violent, so there is an increased risk of injury and property damage. The political situation is unstable. Currently, a lot of the oil fields are