What’s Wrong with Venezuela?

According to the World Bank, Venezuela’s economy will contract 10% this year, the most of any in the world. In order to keep the country afloat, the central bank of Venezuela has already burned through $25 billion in cash reserves. The International Monetary Fund (IMF) has stated that inflation is heading toward near unprecedented levels – 159% during this year alone – and the Venezuelan economy is expected to remain in recession until at least through 2016. During the next year, export revenues from oil will barely cover providing for the country’s import needs and servicing its debt. More…