Predictions for the Venezuelan economy in 2017

This year has been disastrous for the Venezuelan economy. While Latin American region enjoys overall stable, even improving performance, on many levels, the economy of Venezuela became the worst in the World, with no safe haven in sight.

For example, in accordance to IMF, the economy is expected to drop by a whole 10% by the end of 2016, while inflation will reach almost four digit numbers. Under earlier estimation the inflation was not expected to move beyond the 480% mark, but here we are in July and the inflation has almost doubled. However, the worst is yet to come, as the country is expected to cover a 5 billion USD in bond payment in the last quarter of 2016.

Production in the country is coming to a halt, especially in the energy sector, which was the main fuel in the socialist economy. "While Iran is clearly OPEC's biggest source of supply growth this year, Venezuela is notching up the largest decline," a report from the International Energy Agency points out.

Healy Consultants predicts in 2017, the country may indeed reach out to the IMF for emergency bailout even though Hugo Chavez discontinued communication with the international organization long ago. While there are some import and services businesses that still are interested in the country, sky-high prices result in general goods shortages. This month, more than 120,000 Venezuelans managed to finally move across the western border literally swarming both shops and grocery stores in the Colombian city of Cúcuta. We expect emigration in Venezuela to continue to increase with Colombia as most likely go-to solution in 2017.