The dropping fuel prices have left some countries in Latin America managing well than others according to a report published earlier in the year on The National. In Colombia and Mexico, they are oriented more to the free-market and hence they have not been left in a crisis due to the dropping oil prices due to their economic policies’ flexibility. These countries have a floating currency type of a system that allows them the chance of adjusting their economies accordingly when external shocks rock the world economy. According to David Osio, a financial advisor at Davos Financial Group, countries that do not have such economic and political systems that allow for flexibility will face a liquidity crisis.
Venezuela is one of the countries that has been affected by the dropping fuel prices as its systems are not flexible to adjustments and hence it is facing a liquidity crisis. This has created a negative spiral in the country which has affected its domestic economy and economies, thereby affecting its future guarantees. David opined that the decline in the prices of oil have a huge impact on the macroeconomic. Venezuela is suffering more than any other country as oil constitutes about 95% of all the exports it has and 50% in tax revenues. David Osio warned that this drop in oil prices would seriously impact the economy of Venezuela thereby affecting their ability to go on servicing its external debt.
About David Osio
David Osio is a proficient professional in the industry of financial services and is the current CEO of the Davos Financial Group. He focuses on delivering expert financial advisory and asset management services. Davos Financial Group serves a select clientele and is touted as the first comprehensive firm to offer financial advisory services in Venezuela. Prior to founding the Davos Financial Group, David Osio, was the Vice President Banco Latino International, Commercial Banking based in Miami. He supervised all the corporate departments, management of customer acquisitions and defining of market strategies.
He helped this company experience a significant growth in its portfolio to enable it gain a strong international position. He gained his leadership experience during his stint as the Director of Escritorio Juridico MGO, Caracas, Venezuela. He studied at Univesidad Catolica Andres Bello and graduated with a degree in Law (Hons) in 1988. He furthered his training at the New York Financial Institute and Instuto de Estudios Superiores Administrativos. Apart from Finance, he offers charity support to Wayuu Taya Foundation and the Children’s Orthopedic Hospital based in Venezuela.