New Price Controls May Mark The End Of Liberalisation In Venezuela

• A number of measures announced by the Venezuelan government, including new price controls, suggest that the partial economic liberalisation seen in the country in recent months has come to an end.
• The new measures, intended to address shortages amid the Covid-19 outbreak, are unlikely to be effective, and reinforce our view that Venezuela will not return to strong long term growth while the current government remains in power.
• Risks to social stability will likely continue to rise in the weeks ahead, as shortages and a rising Covid-19 case total are likely to weigh heavily on living conditions in the country.

 (Source: Fitch)