- PABLO ESCALONA
21 de marzo de 2017 07:07 AM
Actualizado el 23 de marzo de 2017 06:58 AM
Financial firm Torino Capital estimates that real per capita income in Venezuela has slid 28% in the past four years.
In its weekly report, the firm refers to two scenarios for that matter. Firstly, there have been a number of “misguided” economic policies adopted since 1999, such as nationalizations, lack of protection of property rights, protectionism, excessive regulation and increasing impediments to the existence of a functioning price system.
The second scenario is “associated with the government’s view, Venezuela is suffering from a massive external shock that would have forced this or any government to cut imports in order to ensure external sustainability.”
In addition to these macroeconomic explanations, Torino infers that the current state of affairs has do also with has to do with “the very small level of savings in liquid assets carried out under the period of the oil boom.”
Further, Torino Capital underscores that the economic policies established since 1998 “have been clearly unsatisfactory is in their ability to take advantage of the country’s capacity to produce oil.” In their argument, they specify that Venezuela, in spite of having the largest oil reserves in the world, it is also the main producer with the second slowest output rate since 1999.