The damage caused by earthquakes in Venezuela is estimated at 19.6 billion dollars, according to World Bank assessments
The World Bank Group estimates that the earthquakes on June 24 caused $19.6 billion in direct property damage, highlighting the importance of a quick reconstruction for Venezuela’s economic recovery. These findings come from the Global Rapid Damage Assessment (GRADE), which provides an initial evaluation to help the Venezuelan government and its development partners understand the scale of the reconstruction task and prioritize recovery and rebuilding efforts, as the country faces one of the biggest disasters in its history recent.
According to this assessment, 47% of the total damage affected residential buildings, followed by infrastructure (27%) and non-residential buildings (26%). The state of La Guaira and the capital district were the hardest hit areas, accounting for about half of the total damage.
Building on the findings of the GRADE study, the World Bank Group carried out a supplementary analysis of the potential macroeconomic, socio-economic, and recovery implications of the disaster. This assessment concludes that the pace of reconstruction will be a key factor for the country’s economic recovery and social outcomes.With current levels of public and private investment, reconstruction would mainly have to be funded by redirecting resources originally meant for other investment projects. In this scenario, reconstruction would remain unfinished for ten years, with lasting negative effects on economic activity.
On the other hand, a faster reconstruction effort, supported by higher public and private investments, would help ease the economic and social impact of the earthquakes.”Earthquakes have upended lives, damaged essential infrastructure, and created new challenges for Venezuela’s recovery. Effective recovery relies on reliable data. This assessment provides the Venezuelan government and its partners with an early, objective basis for recovery planning, and the World Bank Group is committed to supporting this effort at every step,” said Susana Cordeiro Guerra, Vice President of the World Bank for Latin America and the Caribbean.The World Bank Group works with the Venezuelan government and its development partners, including the Inter-American Development Bank (IDB), which also provided data for the report, and the Development Bank of Latin America (CAF), to identify the additional technical and financial support needed for assessing damages and needs, recovery, and reconstruction, drawing on its experience in supporting recovery after major disasters in the region and beyond.
