Venezuela quake damage could reach 7 percent of GDP, USGS estimates

Venezuela is facing a costly recovery after two powerful earthquakes killed at least 188 people and injured 1,500, according to Al Jazeera. Preliminary estimates from the United States Geological Survey put possible economic losses at 1 percent to 7 percent of the country’s gross domestic product.

The earthquakes, measured at magnitudes 7.2 and 7.5, struck on Wednesday afternoon about 160 kilometres west of Caracas, Al Jazeera reported. The USGS estimate was based on Venezuela’s $111bn GDP and was released as authorities and aid groups began assessing damage to housing, hospitals and public infrastructure.

Al Jazeera reported that Venezuela declared a state of emergency after the quakes. Interim President Delcy Rodriguez said a $200m fund from the International Monetary Fund would be used to help rebuild infrastructure, hospitals and homes.

Aid response begins

Rachel Ziemba, an economist and senior adjunct fellow at the Center for a New American Security, told Al Jazeera that reconstruction would probably require outside help from the United States, regional governments and international financial institutions. She said changes to sanctions rules may be needed to allow remittances, capital flows and imports of construction materials.

US Secretary of State Marco Rubio said Thursday in Bahrain that Washington had sent rescue resources and expected a clearer picture of needs within 48 hours, according to Al Jazeera. Rubio said the US would mount a “whole government response,” while noting logistical problems because Simon Bolivar international airport, Venezuela’s main airport, remained closed.

The United Nations has “fully mobilised” humanitarian efforts, its humanitarian chief said, according to Al Jazeera. Switzerland sent 18 tonnes of rescue equipment, and Al Jazeera’s Noris Soto reported from Caracas that private companies had been asked to help clear rubble.

The disaster hit a country already under heavy strain, Al Jazeera reported. More than 20 million of Venezuela’s 31.7 million people were living in poverty with limited access to food and medicine before the quakes, and many hospitals lacked reliable water or electricity.

At Caracas’s Hospital de Clinicas, a worker told Al Jazeera that staff were asked to double night shifts to treat the injured. Authorities cancelled classes for the rest of the week while they assessed damage.

Oil sector damage appears limited

Reuters reported that the earthquakes had limited impact on Venezuela’s oil and gas sector, which usually produces 1.2 million barrels of crude a day. Preliminary reports shared with Reuters said the El Palito refinery in Carabobo state, near the epicentre, was not damaged.

Reuters reported that the Moron Petrochemical Complex, Venezuela’s second-largest petrochemical plant, resumed production Thursday after a brief shutdown. Workers had initially been told to stay away after assessments found a leak in a storage tank on Wednesday, though Reuters said it was not immediately clear whether the leak had been repaired before the restart order.

Chevron told Al Jazeera it remained operational in Venezuela and said it was focused on supporting employees, nearby communities and safe operations. Al Jazeera reported that Shell, Eni and Repsol said all of their workers had been accounted for.

Ziemba told Al Jazeera the human toll may exceed the economic hit if energy facilities avoided major damage. She noted that oil provides most of Venezuela’s revenue, even as US sanctions limit how much of that money reaches the country.

This story draws on original reporting from Al Jazeera.