December 7, 2015


Venezuela elections: Turning point for world's worst economy? (Patrick Gillespie, 12/05/15, CNNMoney)

Venezuela is the world's worst economy this year.

But Venezuelans voted for change Sunday, offering the best hope for a turnaround in 16 years.

The country's broad opposition party, Democratic Unity, won a majority of seats in Congress. The vote was a huge blow to President Nicolas Maduro and his United Socialist Party of Venezuela.

It's one of the biggest wins for the opposition party since Maduro's predecessor, the late Hugo Chavez, began his rule in 1999.

Venezuela's economy has tanked -- it's expected to shrink 10% this year. Inflation has risen 159% and it's expected to rise 204% next year, according to IMF. Its currency, the bolivar, is worth less than a penny on the black market exchange rate, after having lost 81% of its value against the dollar this year.

Maduro's government can't pay for basic imports like diapers and flour. That leaves many Venezuelans waiting in line for several hours outside grocery stores with empty shelves. The unemployment rate is expected to be 14% this year and 
18% next, according to the IMF. In 2014 it was 7.9%.

The Democratic Unity's victory could be the change that Venezuela needs to turn its economy around

Bolivarism wasn't an alternative either.

Posted by at December 7, 2015 5:16 PM