Deadly twin quakes are a gut punch to a Venezuelan economy already on its knees

The strongest quake to hit Venezuela in more than a century could not have come at a worse time for the country.

The Latin American nation’s once-booming economy had already been crippled by years of US-led sanctions, hyperinflation, government corruption and mismanagement of the oil sector, despite sitting on the world’s largest oil reserves. Its GDP has shrunk by roughly 80% since 2013.

Then came the US capture of former President Nicolás Maduro in January.

In his place, acting President Delcy Rodríguez has been cautiously liberalizing the economy and courting foreign oil companies, while currying favor with Washington pragmatically and seeking relief from crushing sanctions.

But even though the US has eased sanctions, and oil production has gradually increased, inflation remains high and ordinary citizens continue to struggle with low pay. In 2025, nearly 8 million people, or about a third of the population, required humanitarian assistance, according to the UN.

Basic services and goods, from filling up your tank to buying generic medicines at the pharmacy, can be difficult in Venezuela, as the country suffers chronic shortages of day-to-day items. The humanitarian emergency caused by the two quakes will put even more pressure on the stretched supply chain.

Meanwhile, the country’s crucial oil industry needs billions of dollars of investment to get anywhere close to the halcyon days of the late 1990s when production was at its height.

A natural disaster on this scale will severely dampen fragile hopes of reviving the economy, not to mention the potential for thousands of casualties and widespread damage.

Following years of economic devastation and underinvestment in public services, the country’s infrastructure – from hospitals to electricity and water – is ill-equipped to deal with a crisis like this.

For now, at least 32 people are dead and 700 injured, and the number of casualties is expected to rise, Rodriguez said.

Early modeling from the US Geological Survey estimates there will most likely be economic losses between $10 billion and $100 billion – the upper figure roughly the size of the entire Venezuelan economy.

Beyond crumbled buildings, the strong shaking caused by the quakes could also spark fires by rupturing gas lines or damaging electrical systems, said Dr. Lucy Jones, a seismologist at the California Institute of Technology.

These cascading impacts can exacerbate the disaster, with fires sometimes doubling the economic losses from a major quake, she added.

State of emergency

But with an embattled economy, there is no clear way for the government to support a healthcare system that could soon be overwhelmed, or cover reconstruction bills, all while Caracas negotiates the basic terms of its return to the global economy.

For a population already enduring poverty, these double-punch earthquakes have struck at the worst possible moment.

In a televised address on Wednesday evening, Rodríguez declared a state of emergency.

“We have activated the country’s entire public and private health network – particularly in the most affected areas – to treat the injured during this highly sensitive time for the population,” she said, adding that a high-level task force has been formed to oversee search and rescue operations.

The ousted and jailed Maduro expressed his solidarity with the Venezuelan people, according to a post on his official Telegram channel.

“Today, there is only one message: maximum unity, maximum solidarity, and maximum action,” said the message on behalf of Maduro and his wife Cilia Flores de Maduro, who are currently in federal custody in New York facing drug-trafficking and weapons charges after being captured by US forces in January.

One of the nation’s most high-profile opposition leaders, María Corina Machado, shared her heartache on X.

“My heart, my infinite embrace and my prayers are with every Venezuelan home in these hours of anguish,” said Machado, who was awarded the Nobel Peace Prize last year and has been living in exile, facing persecution at home.

Will the US step up?

The earthquakes Wednesday will now test how far the US is willing to go to support Venezuela, a country President Donald Trump said the US would “run” once he removed Maduro by military force.

Trump has touted the success of the US intervention in Venezuela and his unlikely partnership with Rodriguez.

Just one day before the deadly quakes struck Venezuela, Trump said the country was “doing great” at a rally in Pennsylvania.

“We’re getting along great. The people running it, they’re our people, they’re great people. And the people are happy in the country. They have smiles. They were miserable, they were starving,” Trump said.

Trump also said the US has “paid for the cost of the war 28 times already,” by extracting millions of barrels of oil. “Now we’re making a lot of money with Venezuela and Venezuela is doing great.”

Following the quake Trump said the US “stands ready, willing, and able to help” in a post to Truth Social late Wednesday.

“I have instructed all agencies of our government to get ready to move quickly,” Trump wrote. “We will be there for our new and great friends.”

Secretary of State Marco Rubio said the US would immediately deploy search and rescue teams, medical resources, and humanitarian assistance to Venezuela.

Many in Venezuela will now be waiting to see if those vows from the world’s wealthiest nation will now turn into concrete action.