The night of June 24, 2026 was no less than a major crisis for Venezuela. Around 10 pm, a powerful earthquake of 7.2 magnitude occurred near San Felipe, the capital of Yaracuy province. Just 40 seconds later, a second and even bigger earthquake of 7.5 magnitude occurred near Yumare city. Both earthquakes occurred about 284 to 293 km west of the capital Caracas. These shocks shook the entire country. Many buildings collapsed in the capital Caracas, including a bank building. Simón Bolívar International Airport was damaged and all flights had to be cancelled. There were also reports of building collapse in states like Trujillo, Carabobo, Aragua, Miranda and La Guaira.
The US Geological Survey (USGS) has warned that 10 thousand to 1 lakh people may die in this disaster. But earthquakes are not the only problem. After two earthquakes, Venezuela’s economy has suffered a third shock. The biggest concern is that this disaster has come at a time when Venezuela is already facing a serious economic crisis. Let us know how many years it will take for him to recover…
World’s largest oil reserves, still in crisis
Venezuela has the world’s largest oil reserves. The country has reserves of about 303 billion barrels of oil, which is about five times more than America’s reserves. Despite this, the country’s economy has weakened badly. Venezuela’s GDP is expected to decline by approximately 80% between 2013 and 2025. This decline is considered to be worse than the economic crisis that occurred after America’s Great Depression and the breakup of the Soviet Union. Oil production also fell sharply. In 1998, Venezuela produced 3.5 million barrels of oil daily. But by 2020 this production reduced to only 3.92 lakh barrels per day.
Inflation in the country also reached record level. The inflation rate in 2025 was 475%, which was considered the highest in the world. The monthly income of common people is only between 100 to 300 dollars, making it difficult for families to buy food and essential goods. According to the United Nations and other agencies, about 8 million people were in need of humanitarian assistance in 2025. This is approximately one-third of the total population of the country.
Hope arose after political change
There was a big change in Venezuelan politics in January 2026. On January 3, US forces arrested former President Nicolas Maduro. After this, Vice President Delsey Rodriguez was made the acting President. Rodriguez took several steps to improve the economy. He reduced the monopoly of state oil company PDVSA and opened the oil field to foreign companies.
New agreements were signed with companies like Chevron of America, Repsol of Spain and Eni of Italy. After these steps, oil production again increased to above 1 million barrels per day. Economists estimated that Venezuela’s economy could grow at a rate of 12.1% in 2026. For the first time after many years, hope for economic improvement was visible in the country. But now the earthquake has given a big blow to these hopes.
Fear of loss up to 100 billion dollars
According to the initial report of USGS, the earthquake could cause economic loss of $10 billion to $100 billion. USGS’s PAGER system estimates that the loss could exceed $100 billion. Its probability is said to be 39%. This amount is believed to be equal to the entire economy of Venezuela.
The biggest problem is that the country does not have enough money for reconstruction. Venezuela has a foreign debt of about 170 billion dollars. At the same time, much of the oil revenue is deposited in accounts monitored by the US so that lenders cannot confiscate it. In such a situation, the government has limited resources for relief and reconstruction.
Why did experts express concern?
Caltech seismologist Dr. Lucy Jones says that collapse of buildings is not the only danger after a major earthquake. Earthquakes can damage gas pipelines and power systems, which can lead to fires. On the other hand, if the water pipeline breaks, the fire department finds it difficult to extinguish the fire. In such a situation, a fire after an earthquake can increase the economic loss manifold. Health system is also a matter of concern.
Venezuela’s health system is already weak. The arrival of a large number of injured may put huge pressure on hospitals. Apart from this, if oil production and oil infrastructure is damaged, the country’s biggest income can also be affected. At present, the government gets 50-60% revenue from oil and its contribution to GDP is about 20%.
It may take 10 years or more to recover
Experts give the example of the 2010 earthquake in Haiti. Even 16 years after that 7.0 magnitude earthquake, Haiti has not completely returned to normal. Venezuela may also take decades to bring its oil production back to 1990s levels. Now this earthquake has further increased the challenge of reconstruction.
Experts believe that due to the earthquake, the country’s GDP may suffer a loss of 2% to 20%. Without major international cooperation, debt restructuring and political stability, it may take at least 10 years or more for Venezuela to recover from this crisis. This earthquake can further push back the country’s economic recovery.
Also read: Venezuela shaken by earthquake; Painful scene of devastation in 10 pictures and videos
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