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🇻🇪 Venezuela /Disasters & Emergencies

Earthquakes Profoundly Alter Venezuela's Economic Outlook, Requiring Massive Reconstruction

From El Nacional · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

Analysis Sources not specified Ongoing story
  • Economist Asdrúbal Oliveros warns that recent earthquakes in Venezuela have profoundly altered the country's economic outlook.
  • The focus has shifted from growth and investment to large-scale reconstruction requiring international aid and reforms.
  • Oliveros emphasizes that rebuilding will necessitate a combination of state effort, private sector capacity, civil society support, and international cooperation.

Recent earthquakes in Venezuela have drastically reshaped the nation's economic prospects, shifting the national conversation from growth and investment to the urgent need for large-scale reconstruction, according to economist Asdrúbal Oliveros. The tremors, which occurred on June 24th, have forced a complete reevaluation of the economic agenda, moving away from discussions about GDP growth, currency stabilization, and multilateral relations.

There are weeks that change a government. And there are weeks that change a country. This is one of them.

— Asdrúbal OliverosOliveros's assessment of the profound impact of the earthquakes on Venezuela's economic trajectory.

Oliveros noted that before the disaster, Venezuela's economic discourse centered on potential growth rates, exchange rate stability, and normalizing ties with international financial institutions. The earthquakes, however, have introduced a new reality. He stated, "There are weeks that change a government. And there are weeks that change a country. This is one of them." The focus is now on the immense task of rebuilding, which will demand significant international support and institutional reforms.

The international evidence shows that a major earthquake can generate losses equivalent to between 3% and 10% of GDP.

— Asdrúbal OliverosOliveros citing international data on the economic impact of large-scale earthquakes.

International evidence suggests that major earthquakes can result in economic losses equivalent to 3% to 10% of a country's GDP. Venezuela faces this challenge with limited state capacity due to years of economic crisis. Despite this, Oliveros highlighted the commendable response from private organizations, universities, churches, and civil society during the emergency. He stressed that international cooperation is no longer a supplementary factor but a prerequisite for recovery. The economist concluded that successful reconstruction hinges on a swift combination of government efforts, private sector and civil society capabilities, and decisive international aid, which will shape not only the immediate economic performance but also the long-term recovery prospects over the next decade.

International cooperation will cease to be a complement and become a necessary condition for recovery.

— Asdrúbal OliverosOliveros emphasizing the crucial role of international aid in Venezuela's reconstruction.
DistantNews Editorial

Originally published by El Nacional in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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