Venezuelan president to outline plan to fight recession

Global Business

Shortages of basic goods in Venezuela has made it desperate to seek financing as it faces recession. President Nicolás Maduro has vowed to fix the economic crisis, but has yet to specify any details of a plan. CCTV America’s Martin Markovits reported the story from Caracas, Venezuela.

Venezuelan president to outline plan to fight recession

Venezuelan president to outline plan to fight recession

Shortages of basic goods in Venezuela has made it desperate to seek financing as it faces recession. President Nicolás Maduro has vowed to fix the economic crisis, but has yet to specify any details of a plan. CCTV America’s Martin Markovits reported the story from Caracas, Venezuela.

While Venezuela has the world’s largest oil reserves, foreign currency for imports has been in short supply leading to shortages of everything from toothpaste to car parts.

One Caracas mechanic, Omar Sanchez, has been struggling to keep his business afloat as a result.

“We’re completely affected by this crisis, both our clients and the shop itself,” Sanchez said. “We can’t find replacement parts, oil or lubricants.”

Falling oil prices have pushed the economy into a deep recession and inflation is more than 60 percent, one of the highest in the world. In the face of the crisis, Maduro has vowed to revive the Venezuelan economy, although there has been no major announcement as of late.

Long lines are now a common sight in Caracas.

“For five years we’ve been waiting, waiting for the government to take action,” Sanchez said. “And this year we’re waiting for measures so we can finally decide if it’s worth it to stay open or close.”

A drop in oil prices has also added to the country’s sluggish growth. Economists warn that continued delays with reforms could further damage Venezuela’s fragile economy.

“The fact that Venezuelans have to spend hours in line, without any guarantee that products will be available, is something that deteriorates our society,” economist Ronald Balsa said. “And, if the president doesn’t do anything, things will get worse, but at an even faster rate.”

Maduro recently announced an international tour to seek economic aid, with stops in China and Russia. He has promised new measures upon his return.