The Venezuelan dictator Nicolas Maduro acknowledged this Tuesday that your country lost 99 percent of its foreign exchange earnings in the past six years, which he blamed on the US sanctions that he described as a “total war.”
“In six years, we lost 99 percent of the volume of income in foreign currency, in other words, of every 100 dollars or euros that the country obtained from oil sales in 2014, today it obtains less than one“, He assured when presenting an” anti-blockade law “before the Constituent Assembly, a body made up only of Chavistas that has abrogated the functions of Parliament and recently admitted that it will not carry out the function for which it was theoretically created: to draft a new Constitution .
The Venezuelan regime does not usually release official data about the economy. However, the opposition National Assembly, which does, published a report at the end of August in which it affirmed that it sank 32.8 percent compared to the same period in 2019.
The contraction was due to lower oil production and the effects of the COVID-19 pandemic in the commerce, banking and construction sectors, the congressional report noted.
A “GIANT” FALL
According to the dictator, the Venezuelan State has registered a “Gigantic” drop in income. The decline, which, as Maduro himself acknowledged, had not been made public until now, represents a “unprecedented crash that ignores the right and that ignores a certain exquisite left ”.
“Without a doubt, it is an earthquake at the very foundations of the entire economy, it had as its initial channel the declared war on oil prices (…) later, when prices began a relative recovery (…) it was then passed to phase 2, the collapse, the total blockade and the total persecution of the country’s economy and finances ”, he added.
Likewise, he emphasized that “the rate of fall of external income, since 2015, rises to 30,000 million dollars a year”.
“This figure defies one’s own imagination,” said the dictator. Along these lines, he asked the audience to search for “any country in the world” and ask “its economists what would happen if that economy stopped receiving USD 30,000 million a year for five years.”
What would happen before “the steep drop in eternal income“And how would it affect its indicators, trade balance, Gross Domestic Product or the price index?, Among others, he asked
Over almost two decades, The Venezuelan regime maintained a model of controls that affected productive activity. A relaxation of regulations, which occurred in mid-2019 to give areas such as commerce and industry a break, came late, according to lawmakers and economists.
In parallel, the oil sector, which provides the bulk of income, It has been affected by years of divestment, mismanagement and, more recently, US sanctions, which have impacted on the commercialization of crude.
As a consequence, as he stated, “a de facto process of economic, chaotic and speculative informalization”.
Maduro accused the United States of being one of the causes of the collapse, in part through a “financial persecution to suffocate economically” and “legal-political operations in foreign courts to deprive it of its assets.”
He also referred to what he described as an “international economic embargo on Venezuelan oil and products,” as well as an “internal sabotage to provoke the destruction of the industrial equipment” of the state-owned company PDVSA.
Regarding Venezuelan oil production, he assured that between 2014 and 2019, it fell by 66.5 percent. “By 2019, we only generated a third of the oil that we produced in 2014,” concluded the Venezuelan head of state.
Venezuela produced about 3.3 million barrels of oil a day in 1998 and, according to different sources, today it produces about 400,000, the lowest figure in approximately eight decades.
(With information from EFE)
MORE ON THESE TOPICS: