Venezuela Earthquake: Economic Losses Could Reach Up to 7% of GDP

Powerful earthquakes hit Venezuela on June 24, 2026, potentially causing economic losses of up to 7% of the South American nation's gross domestic product (GDP), according to preliminary estimates from the U.S. Geological Survey (USGS).

Two quakes, measuring 7.2 and 7.5 magnitude, struck about 160 km west of the capital Caracas on Wednesday afternoon, killing at least 188 people. Preliminary estimates released Thursday indicated damage could range between 1–7% of Venezuela's $111 billion GDP.

Interim President Delcy Rodriguez announced a $200 million fund from the International Monetary Fund (IMF) to help rebuild infrastructure, hospitals, and housing. Economist Rachel Ziemba of the Center for a New American Security noted: “A large-scale reconstruction almost certainly will be necessary, and that demands support from abroad, including the U.S., regional countries and international financial institutions. The government appears to have quickly announced a reconstruction fund with IMF backing.” She also suggested that adjustments to sanctions might be needed to facilitate remittances, capital flows, and greater flexibility in importing materials.

The U.S. is sending resources to assess damage and provide aid. Secretary of State Marco Rubio said the U.S. has deployed rescue operations and will have a clearer picture of needs within the next 48 hours: “We will have a whole-of-government response.” However, Simon Bolivar International Airport, Venezuela's main airport, remains closed, creating logistical challenges.

Experts are closely watching how the U.S. response may influence diplomatic relations. John Deal, a capital markets director at Post Oak Group investment bank, commented: “This could be an opportunity, perhaps a catalyst, to move the relationship in a positive economic direction. The U.S. is very interested in ensuring oil assets, and it appears Venezuela's oil infrastructure was not significantly damaged. Meanwhile, the country suffered heavy damage in its most sensitive area: the capital Caracas.”

The United Nations has also “mobilized fully” humanitarian efforts, while Switzerland is sending 18 tons of rescue equipment. Al Jazeera correspondent Noris Soto reported from Caracas that private companies have been asked to help clear debris.

Aid challenges come against an already fragile economic backdrop. Of Venezuela's 31.7 million people, more than 20 million live in poverty, lacking food and medicine. Many hospitals lack clean water and electricity. Staff at Clinicas Hospital in Caracas said they are working overnight shifts to treat the injured. Classes have been suspended for the rest of the week. About 10% of the pre-earthquake population lived in substandard housing, according to a 2023 report from Andres Bello Catholic University. The housing market is frozen due to inflation and reduced purchasing power.

The earthquakes had limited impact on the oil industry, which produces 1.2 million barrels of crude oil per day. The El Palito refinery in Carabobo state was undamaged, according to preliminary reports to Reuters. The Moron petrochemical complex, the country's second-largest, resumed operations Thursday after temporarily stopping due to a tank leak. Chevron reported it was still operating, while Shell, Eni, and Repsol confirmed all personnel were safe.

Economist Ziemba concluded: “The human toll is likely greater than the economic damage, especially if energy infrastructure was not significantly damaged. Most of Venezuela's revenue comes from oil, even though U.S. sanctions restrict those flows into the country.”