The economic crisis in Venezuela has gone so bad that the monthly minimum wage is good enough only for a cup of coffee, or a pie.
The economic crisis in Venezuela has gone so bad that the monthly minimum wage is good enough only for a cup of coffee, or a pie. In some cases, people are using credit cards to purchase a packet of bread, and some even struggling to get more credit from the banks. The economic crisis in Venezuela has escalated as inflation, which is expected to zoom 13000% this year as per IMF estimates, has decimated the salaries of the people to literally nothing.
A Caracas resident, Beglis Villanueva, is a private-school teacher, whose three credit cards have a combined total credit limit of $2. “I use them to buy bread, which is the only thing I can buy with them,” Beglis Villanueva told Reuters.
President of Venezuela, Nicolas Maduro, announced raising the minimum monthly salary to 1 million bolivars on the eve of May Day, which won’t be enough for a kilo of meat, his opponent and Presidential candidate Henri Falcon said. This is the third increase this year, but still less than $2 at the black market rate, according to Reuters.
The Venezuelan crisis is similar to Zimbwabe where the inflation was estimated at 79.6 billion per cent in the mid-November 2008, following which it announced to switch to US Dollars, along with Britain’s pound and the South African rand.
Inflation is high in many other countries too but does not come as close as Venezuela. People in Argentina are struggling to pay for basics like food as the country deals with stubbornly high inflation, but it is not as bad as 2016 when it peaked to 47%. Other countries with the highest inflation are South Sudan 476.02%; Suriname 67.11%; Angola 33.68%; Malawi 19.78%.