The Financial Times just reported that there are serious concerns over the state of Venezuela’s imports, which continue to plunge at a drastic rate. In the past year alone, Venezuela’s imports have dropped 40 percent. In fact, the article reports that Venezuela is actually in the middle of the world’s deepest recession right now because of the energy crisis that is capsizing the country.
While Venezuela is home to the largest oil reserves in the world right now, the contraction in imports is a serious blow to the country’s economy as well as international markets. According to expert Danilo Diaz Granados, the drop in imports for Venezuela is completely unprecedented, and only time will tell how damaging this economic downturn will be for the country and the region at large.
Diaz Granados also said, that though the government of Venezuela has been steadily decreasing government spending and implementing a series of intense austerity measures to prevent the country from total economic and political collapse, there appears to be little hope that this will completely stabilize the country. With inflation rates currently spiraling out of hand, no amount of reduction in spending at this rate will make a serious dent in the magnitude of economic turmoil for the country.