Real Income Rises in Venezuela Despite US Economic War: Mission Truth
A street market in Caracas, Venezuela. Photo: X/ @RaynerPenaR
July 23, 2024 Hour: 10:44 am
The relationship between the bolivar and the U.S. dollar has also shown stable behavior so far this year.
On Monday, the Mission Truth research group published a study showing that inflation is decreasing and the real income of the population is increasing in Venezuela.
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“Venezuela continues to advance in its economic recovery, which has been observed for several quarters,” it said, highlighting that this is happening despite U.S. sanctions against the Bolivarian nation.
During June, inflation was just 1.0 percent, which is the lowest rate in 39 years. Cumulatively, inflation reached 8.8 percent in the first half of the year.
By the end of 2024, it is even expected that inflation in Venezuela will reach figures lower than those projected by financial institutions such as the World Bank and the International Monetary Fund (IMF).
This will constitute a new achievement in President Nicolas Maduro’s economic policy, as Venezuela experienced inflation levels of up to 344,000 percent in 2019, which decimated the population’s income.
“In this context, the current control of inflation demonstrates the firm commitment of the Bolivarian government to combat one of the main weapons used in the U.S. economic war against the nation,” Mission Truth said.
Regarding the foreign exchange market, the relationship between the bolivar and the U.S. dollar has also shown stable behavior so far this year. In the first half of the year, the variation of the bolivar against the U.S. dollar was just 1.56 percent, as the exchange rate went from 35.95 to 36.51 bolivars per U.S. dollar.
“This makes the Venezuelan bolivar one of the most stable currencies in the region, only surpassed by the Peruvian new sol,” Mission Truth highlighted, adding that another sign of stability is the growth of bank deposits. Between May 2023 and May 2024, deposits increased by 62 percent, reaching US$4.5 billion.
Alongside the control of inflation and exchange rate stability, there has been sustained economic growth over the past 12 months, which has consolidated the domestic supply of goods and services. “All of this is closely linked thanks a recovery program that is undoubtedly showing signs of success,” Mission Truth concluded.
Autor: teleSUR/ JF
Fuente: Mission Truth
