Venezuela's President Nicolas Maduro on Monday announced a 15 percent raise in the minimum wage, effective December 1, to support households amid high inflation.

The South American country's annualized inflation has remained above 60 percent in recent months, rising to 63.4 percent in August, according to the central bank. The socialist government, under Maduro, has raised the minimum wage thrice this year, including the latest hike.

Raising the minimum wage in proportion with rising inflation was appropriate amid 'the economic war' to defend the rights of workers, Maduro said.

In its 15 years in power, the socialist government has raised the minimum wage in 28 instances, he pointed out.

The recent fall in oil prices will only make Venezuela's worse and continued shortages of many basic goods are likely to keep inflation high, Capital Economics Emerging Markets Economist David Rees said last month.

The country has been experiencing a slow balance of payments crisis for some time. The economist expects GDP to contract this year and next and the government to default on its debt obligations in the next two years.

For comments and feedback contact: editorial@rttnews.com

Economic News

What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.