The series of powerful earthquakes that struck Venezuela on Wednesday could cause economic losses equal to as much as 7 percent of the country’s gross domestic product (GDP), according to preliminary estimates from the United States Geological Survey.

Initial assessments released on Thursday estimate that the damage could amount to between 1 and 7 percent of Venezuela’s $111bn GDP after twin earthquakes measuring 7.2 and 7.5 struck about 160 kilometres (100 miles) west of the capital, Caracas, on Wednesday afternoon, leaving at least 188 dead.

Interim President Delcy Rodriguez has said that there will be a $200m fund from the International Monetary Fund that will be used to help rebuild infrastructure, hospitals and housing.

“Significant reconstruction will likely be necessary, and this will likely require foreign support, including from the US, regional actors, and international financial institutions. The government appears to have moved quickly to announce a reconstruction fund with support from the IMF,” Rachel Ziemba, economist and senior adjunct fellow at the Center for a New American Security, told Al Jazeera.

The US is sending resources to assess the damage and provide aid. Secretary of State Marco Rubio said that the US has deployed rescue operations, and it should have a better understanding of what is needed in the next 48 hours. However, logistical challenges persist as Simon Bolivar international airport, the country’s main airport, remains closed.

The United Nations has also “fully mobilised” humanitarian efforts, and Switzerland has sent 18 tonnes of rescue equipment to help alleviate pressure on local authorities. Private companies have been asked to help remove rubble.

Of the country’s 31.7 million people, more than 20 million were already living in poverty with insufficient access to food and medicine, and many hospitals lack even reliable running water or power supplies. Roughly 10 percent of the population pre-quake had been living in vulnerable situations because of inadequate housing.

The quakes had a limited impact on the country’s oil and gas sector. The El Palito refinery and Moron petrochemical complex did not sustain damage. Companies including Chevron, Shell, Eni and Repsol said that all workers are accounted for and operations continue.

Source: www.aljazeera.com