Per capita income in Venezuela has fallen by 28%

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.” More…