Industry Trend Analysis - Economic Difficulties Detrimental To The Healthcare Sector - OCT 2017
BMI View : The ongoing economic crisis in Venezuela will continue to perpetuate the downtrend in pharmaceutical imports , and perpetuate the negative outlook for the healthcare sector. With the country's macroeconomic woes showing no signs of abating, m ultinational drugmakers will be incentivised to limit their activity in the country over the near-term at least. T his will continue to have a direct negative impact on healthcare spending as out-of-pocket spending is a primary source of funding.
Venezuela's healthcare market will continue to be marred by the ongoing economic crisis that shows no signs of abating over the near term. The confluence of soaring inflation, economic recession, and a political crisis has significantly affected Venezuela's currency, which has exacerbated issues relating to medicine shortages in the healthcare sector. We have previously highlighted the increasingly difficult landscape from a drugmaker perspective ( see ' Macroeconomic Issues Will Challenge Multinational Drugmakers' , 14 August 2017).
Pharmaceutical Imports On The Downtrend
|Drug Shortages Amid Downturn To Imports|
|Venezuela: Year-on-year Pharmaceutical Imports (%)|
|f = BMI forecast. Source: United Nations Comtrade Database DESA/UNSD, BMI|