UN says quake damage cost equivalent to 6% of Venezuela’s GDP

UNITED NATIONS: The United Nations on Saturday estimated that the twin earthquakes that struck Venezuela caused US$6.7 billion in physical damage, equivalent to 6% of GDP.

The preliminary assessment is based on seismic modeling, satellite imagery and population data. It accounts for losses to assets including housing but does not cover wider economic disruption from Wednesday’s disaster, the UN Development Programme said in a statement.

UNDP said that the back-to-back quakes hit major population and economic centers near Venezuela’s northern coast, including the capital Caracas and the states of La Guaira, Carabobo, Miranda, Yaracuy and Aragua.

“Direct physical damage is estimated at US$6.7 billion (range of US$4.7 billion to US$8.7 billion), driven by losses to housing and economic assets,” the statement said.

“This does not include infrastructure damage, wider economic disruption and longer-term reconstruction costs,” it said, adding that the total economic impact could be between 1.5 and three times the cost of direct damage.