IMF voices concern about Venezuela's inflation
The International Monetary Fund raised to 4.7% its forecast of Venezuela s real GDP in 2012
The International Monetary Fund said in its World Economic Outlook that Venezuelan economy is expected to grow in 2012 and 2013, but it showed concerned about the country's high inflation rate.
The IMF forecast that the Venezuelan economy will grow 4.7% in 2012, with a slowdown in 2013 (3.2%).
However, the IMF is concerned about inflation. According to the report, "these concerns are particularly serious regarding Venezuela, where policies are not tight enough and inflation is still high."
The IMF forecast that average inflation in Latin America will stand at 7.4%, while in Venezuela it would reach 31.6% and 28.8% in 2013.
The IMF also stressed that for oil exporting countries "risks revolve around the price of oil —which, on the downside, is predominantly tied to the possibility of an intensified crisis in Europe that spills over into slower growth in the rest of the world." The report also stated that in these countries "government expenditures have risen to such a degree that a relatively modest fall in the price of oil can lead to budget deficits."
A group of some 60 Venezuelan economists from across the country and from different generations and backgrounds, has met regularly in the past couple of years and now has brought forth a document explaining the reasons of the current emergency and outlining specific proposals on how to address the serious economic crisis the country has plunged into over the last three years.