Venezuela records highest inflation rate in world

Caracas, Venezuela: Venezuela has recorded the highest inflation rate in the world at 360%. The figure was released by the International Monetary Fund (IMF) last month.

Inflation describes the rate at which the prices of goods and services increase over time. Notably, as per IMF, the inflation crisis-hit country saw an increase in consumer prices estimated at 360 per cent in 2023.

This is considered as the tenth consecutive year that the inflation rate in Venezuela is one of the highest on the planet. Even though it is significantly lower than in 2018. In 2018, it reached an astronomical value of 65,000 per cent.

It is to be noted that Venezuela’s political and economic chaos in the last few years was dropped by escalating starvation, hyperinflation, mortality rates, disease and crime, which resulted in massive emigration from the country.

Venezuela, who have fled in flocks, have gone to neighbouring countries like Trinidad and Tobago and Guyana. Considering the present situation, it is believed that the circumstances are by far the most disturbed economic crisis in the country’s history.

It is also the worst a country has faced in peacetime since the mid-20th century. On the contrary, Guyana has been the fastest-growing economy in the world, which has discovered light crude oil offshore in its Essequibo region.

However, according to the Government, it is mentioned that in recent years, they renewed the claims to the Essequibo region, threatening to illegally annex the area, which makes up two-thirds of Guyana and is internationally recognized as part of Guyana’s territory.

Notably, Venezuela did not recognize the Arbitral Award, settled in 1899, which gave rise to Guyana’s approach to the International Court of Justice (ICJ) for a final settlement.

The country has not acknowledged that court’s jurisdiction as they will look forward to a referendum on December 3 for the citizen’s permission to disproportionately conquer the Essequibo region.

“Venezuela has said though that it does not recognize the court’s jurisdiction and will be moving ahead with a December 3 referendum in which it is asking its citizens’ permission to illegally annex the Essequibo region.”

Guyana’s Government is relying on a legal resolution of the matter by the ICJ but has indicated that “All options” are on the table when it comes to preserving the sovereignty and territorial integrity of the country against Venezuela.