Friends of Leofinance my respects and greetings!
Today a study has come out from the Venezuelan Observatory of Finance (OVF) related to the economic situation of the country of Venezuela and it has thrown a super interesting data.
For the first time in 17 years! Venezuela reported a month with deflation at an average of 0.5%.
17 YEARS! Friends! I am 18 years old!
I thought deflation was an economic fact that was impossible to happen in this country!
Image taken from the Venezuelan Observatory of Finance website. https://observatoriodefinanzas.com/
As you may notice, one of the items with the greatest impact in terms of price decreases has been the Food and Non-Alcoholic Beverages item, an issue of great importance for the country, knowing clearly the deficiencies that exist with respect to the supply chain that supplies the country and how hard hit the food industry is within the country.
However, I will give you a very personal and sincere opinion, I have read in networks such as X (formerly Twitter) experts in the economic field talking about how negative it is to enter an era of deflation in the country but at this point I wonder or rather I say to myself and I will share with you.
It has been 17 years! that is since I can remember we have lived in a continuous inflation, I even believe that for the years 2017 / 2018 we live in a hyperinflation (this according to what I have read and reported in my university classes) so to say that a deflation is "bad" for the country ... bad!!!! bad are they!!!!
Yes, it can be bad if the productive sectors are affected and also if the average purchasing power decreases, but no, at least as far as I understand it is not happening, the purchasing power is maintained and production is maintained, minimal but maintained, we have not returned to those levels where I remember my grandmother used to send me to the bakery to ask if there was bread!
Of course, the financial opening and the fall of the political blockades have helped, but we do not know if this will continue or if it may change from one moment to the next, what we do know is that we are currently seeing at least a small and surely very transitory improvement in the economy.
I particularly hope for me, for my family and for my future that the economic situation in this country will improve, politically I see it complicated but what I do have clear is that this type of news and results are positive and I hope that can be maintained.
Greetings friends, I wanted to leave an opinion before this fact that at my young age seems to me very surprising.
Text by myself, translated to English by DeepL.com