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Accumulated inflation of 576.3%, according to data from the Venezuelan Finance Observatory, overwhelms the life of the common Venezuelan, coupled with a dollarization to which not everyone has access. For seven years the economy of the oil country has been in decline. According to the calculations of the Ecoanalítica firm, 700 dollars a family of four would need to earn each month, to have access to food, education, payment of public services, among others.
The minimum wage in Venezuela is 10 bolivars, which is equivalent to less than 3 dollars according to the official exchange rate, and most of the wages of the working class do not reach 100 dollars. According to the Center for Documentation and Analysis for Workers (CENDA), the minimum wage in Venezuela is enough to cover less than 1% of the basic food basket.
Despite this critical panorama, the Ecoanalítica firm speaks of a slight improvement in the Venezuelan economy, which in 2021 has registered the smallest contraction in the last eight years. Dollarization and the continuous injections of foreign currency by the Central Bank of Venezuela to stabilize the price of the dollar have caused the inflation rate to drop in recent months.
But these slight improvements in the economy are not perceptible or do not generate an impact on the majority of the population: 94.5% of poverty is registered in the country, according to the only figures that are known, published by the National Survey of Living Conditions ( ENCOVI). This same study indicates that extreme poverty stood at 76.6% and that only 5% of the population has improved their income.
In November, Venezuela entered its fourth consecutive year of hyperinflation. However, among the economic projections for 2022, the Ecoanalítica firm foresees growth, although very limited, compared to an economy that has contracted 80%. They describe it as an economy that is stagnant, but at least stops falling.
The experts also maintain that the trend towards the reduction of the inflation index will continue, and even that it will not reach 1,000% as expected. The projections of the International Monetary Fund (IMF) have also taken a turn for Venezuela: they estimate that the Gross Domestic Product will contract by 5% this year, something that could be considered positive, taking into account that a reduction in the 10%.
Currently, in Venezuela only 7.6 million people are employed and 2.3 million are underemployed, the rest are unable to enter either the formal or the informal market. Thousands of families are trying to overcome a deep crisis that affects their finances and prevents them from covering the basic expenses for a good diet.
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