record inflation, food shortages, no foreign currency reserves
[44] In early 2013, Venezuela devalued its currency due to growing shortages in the country.[45] The shortages included necessities such as toilet paper, milk, and flour.[46] Fears rose so high due to the toilet paper shortage that the government occupied a toilet paper factory.[47] In late 2013, Venezuela's inflation rates increased even higher, to 54.3%,[48] and forecasts from the International Monetary Fund show Venezuela as one of the slowest-growing economies in Latin America for 2013.[49] Black market estimates that most Venezuelans have to use for purchases have risen to almost ten times the official exchange rate.[50]
Venezuela's bond ratings have also decreased multiple times in 2013 due to decisions by President Nicolás Maduro. One of his decisions was to force stores and their warehouses to sell all of their products, which may lead to even more shortages in the future.[51] President Maduro also created "a freeze on commercial rents at rates more than 50 percent lower than they had been at some malls" which resulted with Venezuela's malls and retail industry losing 75% of their incomes.[52] Venezuela's outlook has also been deemed negative by most bond-rating services.[53] According to a Johns Hopkins University professor, Venezuela had a 297% implied inflation rate for 2013.[54]
The year 2014 does not look much better for Venezuela, as analysts believe the country will continue tumbling deeper into recession, and another devaluation of the bolívar seems imminent.[55] As of early 2014, many companies have either slowed or stopped operation due to the lack of hard currency in the country. Ford Motor Co. is one of the largest companies that has slowed production in Venezuela due to its lack of foreign currency for supplies. Because of recent economic uncertainties, Ford also believes that there will be a significant devaluation of the bolívar as well.[56] In January 2014, many airlines, including Air Canada, Air Europa, American Airlines, Copa Airlines, TAME, TAP Airlines, and United Airlines, suspended international flights operating in Venezuela because the government has been restricting access to the U.S. dollar.[57][58] There are talks among airlines of canceling even more international flights out of the country since Venezuela still owes foreign airlines nearly $3.3 billion USD.[59] Venezuela has also dismantled CADIVI, a government body in charge of currency exchange. CADIVI was known for holding money from the private sector and suspected to be corrupt.[60] In February, Toyota, the largest automobile manufacturer, has stopped production indefinitely in Venezuela due to an 87% drop in automotive sales.[61] General Motors Company has also suspended production after losing $162 million USD and stated that they "saw no horizon or resolutions to business operations in Venezuela".[62] In February 2014, doctors at University of Caracas Medical Hospital stopped performing surgeries due to the lack of supplies, even though nearly 3,000 people require surgery.[63] The government's currency policy has made it difficult to import drugs and other medical supplies.[64] The Venezuelan government stopped publishing medical statistics in 2010 and does not supply enough dollars for medical supplies; doctors say that 9 of 10 of large hospitals have only 7% of required supplies with private doctors reporting many patients that are "impossible" to count are dying from easily treated illnesses due to the "downward sliding economy".[65]
http://en.wikipedia.org/wiki/Economy_of_Venezuela#2013_-_present
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