Venezuela confirms economy in recession

Venezuela has confirmed that its economy has fallen into recession and its annual inflation has hit nearly 64 percent, blaming the opposition in the country for the economic setbacks.

The Venezuelan Central Bank said in a statement on Tuesday that the country’s gross domestic product (GDP) shrunk more than 4.8 percent on an annual basis in the first two quarters and 2.3 percent in the third quarter of 2014.

In addition, the country’s annual inflation rate reached 63.8 percent, which is among the highest rates in the world.

The Central Bank said that protests staged by oppositionists earlier this year damaged the country’s economy.

“These actions against public order blocked the correct distribution of basic goods to the population, as well as the normal development of production of goods and services,” the statement read, adding, “This resulted in an inflationary spike and a fall in economic activity.”

Anti-government protests broke out across Venezuela in February, after students took to the streets in the western city of San Cristobal to criticize the country’s crime rate and inflation.

Caracas says the opposition sought to launch a coup d’état against the government with the backing of the United States.

President Nicolas Maduro has also accused the American embassy in the Venezuelan capital, Caracas, of interfering in his country’s domestic affairs.

Caracas and Washington remain at odds since late Hugo Chavez became president in 1999. Both sides have refused to exchange ambassadors since 2010. The countries have chargé d’affaires running their respective embassies.

Furthermore, the country has seen a plummet in oil prices this year. The price of Venezuelan crude, which provides 96 percent of the country’s hard currency income, has halved to USD 46 per barrel since mid-year.