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Venezuela Is Almost Alone in Slashing Its Deficit Amid Covid-19

  • Nation defies global trend for wider deficits to fight slump
  • Loss of access to credit forces government to curb spending

As governments across the world take on record amounts of debt and ramp up fiscal stimulus, the normally profligate government of Venezuela is one of the only countries set to narrow its budget shortfall this year.

The nation’s budget deficit will shrink to 7.9% of gross domestic product in 2020, from 11% last year, according to a study published this month by Andres Bello University in Caracas. That would make Venezuela, roiled by hyperinflation and mass hunger, the only major country in the Americas to tighten its fiscal stance during the pandemic.