In this Feb. 7, 2018 file photo, a woman holds a wad of bills to pay her bus fare in Caracas, Venezuela. The IMF predicted on Monday, July 23, 2018, that inflation in Venezuela would reach one million percent this year, comparable to that experienced in Germany at the beginning of the 20th century and in Zimbabwe at the beginning of the last decade. AP
CARACAS, Venezuela 鈥� Inflation in Venezuela could top 1 million percent by year鈥檚 end as the country鈥檚 historic crisis deepens, the International Monetary Fund said Monday.
Venezuela鈥檚 economic turmoil compares to Germany鈥檚 after World War I and Zimbabwe鈥檚 at the beginning of the last decade, said Alejandro Werner, head of the IMF鈥檚 Western Hemisphere department.
鈥淭he collapse in economic activity, hyperinflation, and increasing deterioration 鈥� will lead to intensifying spillover effects on neighboring countries,鈥� Werner wrote in a blog post.
The once wealthy oil-producing nation of Venezuela is in the grips of a five-year crisis that leaves many of its people struggling to find food and medicine, while driving masses across the border for relief into neighboring Colombia and Brazil.
Shortages in electricity, domestic water and public transportation plague millions of Venezuelans, who also confront high crime, the IMF noted.
If the prediction holds, Venezuela鈥檚 economy will contract 50 percent over the next five years, Werner said, adding that it would be among the world鈥檚 deepest economic falls in six decades.
Socialist President Nicolas Maduro often blames Venezuela鈥檚 poor economy on an economic war that he says is being waged by the United States and Europe.
Maduro won a second six-year term as president despite the deep economic and political problems in a May election that his leading challenger and many nations in the international community don鈥檛 recognize as legitimate.
The IMF estimates Venezuela鈥檚 economy could contract 18 percent this year, up from the 15 percent drop it predicted in April. This will be the third consecutive year of double-digit decline, the IMF said.
Werner said the projections are based on calculations prepared by IMF staff, but he warned that they have a degree of uncertainty greater than in other countries.
鈥淎n economy throwing you these numbers is very difficult to project,鈥� Werner said at a news conference. 鈥淎ny changes between now and December may include significant changes.鈥� /cbb