Venezuelan industry operates 18% below its installed capacity

The president of Conindustria, Juan Pablo Olalquiaga, said that Venezuela is going through a deep economic crisis that has led the industry to operate below its installed capacity.

According to the survey of conjuncture of the first quarter of 2019 prepared by the agency, the country is plunged into a situation by the closure of some 10,000 companies in the last 20 years by the economic measures applied so far.

The results of the survey show that “only 6 percent are using between 41-50 percent of their installed capacity, 9% by 31-40%, 25% by 21-30% of their capacity; 27% of the industry 11-20% and 33% of the sector up to 10% of its installed capacity “.

During the first quarter of the year, more than 90% of the companies in Venezuela were paralyzed or their production decreased due to the blackouts, the restriction in the allocation of credits and the scarcity of gasoline, among other factors.

Other facts that must be mentioned are the lack of investment in the absence of financial security, lack of inventory, hyperinflation, bankruptcy of companies. Olalquiaga said: “It is estimated that there are some 2,500 companies left, the one that is in the best situation is the agroindustry, the manufacture of food, while the smallest is the automotive sector.”

In any case, the remaining companies and industries operate at their lowest capacity, which is seen as an indicator of upcoming closures throughout the country, which will result in unemployment, shortages and a worsening of the crisis.

M.Pino

Source: Dinero.com.ve