The economic situation in Venezuela continues to go from bad to worse, and things are unlikely to get better, experts have warned.

This week, Venezuela's congress was stripped of its powers over the budget, viewed as a move by the country's President Nicolas Maduro as an attempt to consolidate power.



On top of this, the country lacks many basic goods and inflation is out of control. Year-on-year inflation is expected to reach 700 percent this year and UBS forecasts it will reach 1,500 percent next year.



"This situation is vastly deteriorating," Diego Moya-Ocampos, senior Latin America analyst at IHS Country Risk, told CNBC Thursday. "We expect the economy to contract at least 11.5 percent, inflation to hit 700 percent, already the highest in the world."