La Guaira Businesses Suffer Severe Income Loss Post-Earthquake

The productive sector in La Guaira, Venezuela, is facing a severe economic downturn, with 80% of businesses reporting a drastic fall in income after earthquakes struck on June 24. Preliminary data from the regional Chamber of Commerce reveals that the devastation has critically compromised the operational continuity of companies and threatens job stability in the coastal state.

The technical study, which encompasses customs, logistics, commerce, services, and industry sectors, paints a grim picture. A staggering 56.2% of the surveyed companies reported a total loss of income, while an additional 23.8% experienced a decrease of more than 50%. This financial contraction has direct repercussions on the local labor market.

Job security is a major concern, as 85.4% of businesses admit they cannot guarantee the preservation of existing jobs. Furthermore, 31.7% of employers anticipate inevitable staff reductions. Operational stability is also in question, with 35.2% of respondents uncertain about the continuity of their operations, and only 18.5% expecting to maintain their current payroll.

Shirley Camaran, director of the Chamber of Commerce of La Guaira, expressed alarm over the regional diagnosis, highlighting that the measurement process remains open to incorporate more affected businesses. The double earthquake, with magnitudes of 7.2 and 7.5, caused widespread devastation to national infrastructure, damaging over 24,000 homes and severely impacting the commercial and industrial network along the central coast.

Nationally, the World Bank estimates the direct physical damage from the disaster at US$19.6 billion. The international organization has warned that a slow reconstruction process could hinder Venezuela's economic recovery for the next decade.

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The situation that is foreseen is alarming.