The International Monetary Fund (IMF) also expects a new record of inflation rising prices of around 10,000,000 percent by the end of 2019. Last year, the GDP of the South American country fell by 18 percent and since 2013, there has been a cumulative drop of 60 percent, according to a report in the ”Global Economic Perspectives” published on Tuesday. The IMF’s projections also reveal a 10 percent fall in Venezuela’s economic activity overall due to the country’s “worst crisis” ever.
In a monthly report released on Wednesday, the Organization of the Petroleum Exporting Countries said Venezuela told the group it pumped 960,000 barrels of oil per day (bpd) in March, which was a drop of almost 500,000 bpd from February.
Gita Gopinath, IMF chief economist, said: “There is a huge humanitarian crisis. A socio-economic crisis.”
The unemployment rate in Venezuela has also risen 44.3 percent this year, compared to 35 last year.
In 2020, unemployment levels could reach 47.9 percent.
The IMF added the Venezuelan situation is “a considerable burden” for the growth of Latin America and the emerging or developing economies for the next two years.
Experts from the World Bank (WB) have called the situation in Venezuela as “the worst crisis in the modern history of the region”.
A spokesperson said: “Nothing could prepare the region for the escalation of the economic, social and humanitarian crisis in Venezuela, by far the worst crisis in the modern history of the region.“
The World Bank also predicts the socio-economic conditions of the country ruled by President Nicolas Maduro will “continue to deteriorate rapidly.”
But Mr Maduro has said the country’s economic crisis has been caused by harsh US sanctions over its opposition to him being in power.
US Vice President Mike Pence called on the United Nations today to revoke the UN credentials of Mr Maduro’s government and instead recognise opposition leader Juan Guaido as the country’s legitimate leader.
He said the United States had drafted a UN resolution and called on all states to support it.
He said to the UN Security Council: “The time has come for the United Nations to recognize interim president Juan Guaido as the legitimate president of Venezuela and seat his representative in this body.”
But it is unlikely Washington will get the support needed to carry out something so huge in either the Security Council or the General Assembly.
The United States and Russia both failed in rival bids to get the Security Council to adopt resolutions onVenezuela in February.
More than 50 countries have recognised Mr Guaido as Venezuela’s leader.
When asked if the US thought it had enough backing to oust Maduro’s government at the United Nations, Mr Pence said: “I think the momentum is on the side of freedom.”
At least 3.4 million Venezuelans have left the country over its humanitarian crisis, with the UN predicting this will rise to about five million by the end of the year.