Economic instability impacts business sectors in Venezuela and Argentina

Economic instability is impacting business sectors in both Venezuela and Argentina. In La Guaira, Venezuela, a study by the local Chamber of Commerce reveals that 80% of the productive sector has seen a drop in income following major earthquakes in June. Approximately 56.2% of surveyed businesses reported a total loss of income, while 23.8% saw reductions exceeding 50%. The seismic events, which included magnitudes of 7.2 and 7.5, resulted in significant casualties and structural damage. Furthermore, 85.4% of companies in the region cannot guarantee job security for their staff.

In Argentina, data from the Center for Political Economy of Argentina (CEPA) indicates a contraction in the formal labor market and business landscape between November 2023 and May 2026. During this period, the country lost 30,633 employers and 411,613 registered jobs. The commerce sector experienced the largest absolute decline with 8,408 business closures, followed by transport and storage, real estate services, and manufacturing. The decline in employers represents a 5.98% decrease from the start of the period.