Venezuela’s economic recovery has slowed after the deadly earthquakes, with growth forecasts cut sharply as the country focuses on rebuilding damaged infrastructure and housing thousands of displaced families.
CARACAS — Venezuela’s devastating earthquakes have significantly weakened the country’s economic outlook, with independent analysts lowering 2026 growth forecasts by as much as four percentage points as reconstruction efforts reshape national priorities.
The twin earthquakes that struck on June 24, measuring 7.2 and 7.5, have claimed at least 3,811 lives, injured more than 16,700 people and left nearly 18,000 residents homeless, according to the latest official figures.
Before the disaster, economists projected Venezuela’s economy would expand between 4% and 8% this year, supported by reforms that opened key sectors—including oil, mining and electricity—to private and foreign investment following the political transition earlier this year.
Now, analysts estimate growth could slow to between 2% and 4% as the government shifts resources toward rebuilding damaged infrastructure and assisting thousands of displaced families.
Fedecámaras President Felipe Capozzolo said the disaster has placed the economy in “tragedy mode,” warning that reconstruction could reduce gross domestic product (GDP) growth by two to three percentage points.
A preliminary assessment by NASA estimates that nearly 59,000 buildings were damaged or destroyed, while the U.N. Development Programme (UNDP) has estimated direct physical damages at approximately $6.7 billion.
Despite the setback, economists say Venezuela’s broader economic reform agenda remains in place. The government continues discussions with the United States, Brazil, the International Monetary Fund (IMF) and the World Bank to secure financing for reconstruction and infrastructure recovery.
Acting President Delcy Rodríguez has already announced a $200 million reconstruction fund and established an international donation account through the Development Bank of Latin America and the Caribbean (CAF) to support rebuilding efforts.
Analysts also expect reconstruction spending to increase inflationary pressures in the coming months, although they believe foreign investment in Venezuela’s energy sector will remain a strategic priority as recovery efforts continue.
