Venezuela Economic Outlook
December 7, 2017The country continues to fall deeper into economic crisis. The bolivar traded in the parallel market plunged to a new record low, past 110,000 VEF per USD, in December, losing over half its value in one month. The sharp fall came after President Nicolás Maduro’s announcement at the start of the month that the country would seek to restructure its external debt, which has added more pressure on the parallel dollar, on top of rampant dollar shortages. While Maduro stated that the country would continue to fulfill its debt commitments in the meantime, state-owned oil company PDVSA failed to make interest payments within the 30-day grace period in November, prompting credit agencies to declare the country in “selective default”. A successful restructuring is critical, as over USD 9.0 billion in debt repayments are due in 2018, and it is not known if the government can fulfill this obligation. Details on the proposed restructuring have been so far sparse, but US financial sanctions are likely to complicate any efforts.
Venezuela Economic GrowthMacroeconomic imbalances, unorthodox policies, surging inflation and a lack of investment are expected to keep Venezuela in a severe economic crisis. A default could result in creditors seizing foreign assets, an enormous risk for the crippled economy, while a restructuring could free up some cash, allowing the government to increase imports and stem persistent goods shortages. Met the why particular panelists see the economy contracting 5.0% in 2018, which is down 1.4 percentage points from last month’s forecast. In 2019, GDP is seen falling 1.6%.
Venezuela Economy Data
5 years of Venezuela economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Bond Yield||5.50||0.0 %||Aug 22|
|Exchange Rate||11.00||0.0 %||Dec 06|
|Stock Market||1,354||2.04 %||Dec 06|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Venezuela Economic News
December 4, 2017
On 3 December, President Nicolás Maduro announced plans to launch a cryptocurrency backed by oil and gas reserves, along with the country’s gold and mineral reserves.
December 4, 2017
Oil prices continued to gain ground in November, hitting the highest price since July 2015.
November 30, 2017
The available evidence continues to point to skyrocketing inflation in crisis-hit Venezuela.
November 3, 2017
On 3 November, the bolivar traded in the parallel market at 44,348 VED per USD. The result marked a 34.2% depreciation from the same day last month.
November 2, 2017
Oil prices continued to climb higher in October, marking the best reading since July 2015.