This past July 28th, 2024, the day the presidential election was held in Venezuela, was the turning point that messed-up the country in many aspects, including the economic one.
By: Corresponsalía lapatilla.com
Tension has reigned over a large part of the national territory as a consequence of the declared election results, so much so that there were days in which the atmosphere in the streets was like in the times of the quarantine lock downs imposed during the Covid-19 pandemic.
And just as in the harsh times of the pandemic, one of the main sectors affected was the commercial sector. For example, in Anzoátegui, trade union spokesmen recognize that there was a sharp drop in economic activity from the end of July onwards.
Current situation
Although it is true that Venezuela has been undergoing serious economic problems for about a decade, in the last couple of years a kind of bubble was created that generated comments such as “there is money on the street.” This despite the fact that the minimum wage has remained at 130 bolivars since the beginning of 2022.
That hopeful feeling lost strength little by little quite a few months before the presidential election, but after that political event, the drop in economic activity was much more noticeable, to the point that ordinary citizens consider that “the bubble burst.”
In fact, the President of the Federation of Chambers and Associations of Commerce and Production of Venezuela (Fedecámaras), Anzoátegui chapter, Monique Loffredo, indicated that in the last four months, commercial activity in this eastern state has been “very cautious.”
“Currently, the user evaluates very carefully what to spend. Most of the consumption is directed towards medicines and food, and yet it is still low,” she commented.
The trade union representative pointed out that one of the notable reasons for this scenario is that wages remain low in some sectors.
She added that as long as the purchasing power of the population does not improve, consumption will continue to be restricted and depressed, which ultimately also harms merchants.
“For a time close to the Christmas season, commercial activity is very discreet. We know that some of the large companies have already paid the Christmas bonuses, but that is the situation we have,” she said.
Weakened strengths
Cities such as Barcelona, Puerto La Cruz and Lechería are known to be the main economic hubs of Anzoátegui State, even over the municipalities that have oil activity.
However, these strengths have been weakened in recent months, also due to the context of post-election uncertainty that affects the entire country.
So much so that the President of the Dairy Chamber of Commerce, José Camino, assured that during the second half of 2024 there was a very evident drop in sales.
It is worth remembering that this city has a reputation for being one of the cities that moves the most money in the country, although experts on the subject are clear that it is only a tiny group that really has significant purchasing power.
Camino even indicated that the decline in commercial activity caused businessmen’s expectations for the final stretch of this year to fall.
He acknowledged that the state government has tried to keep the movement going with events such as the National Games, but the effort has not been enough.
A similar situation occurs in Barcelona, capital of the state of Anzoátegui, where almost all sectors – except food and medicine – are experiencing low hours.
Wael Raad, president of the Chamber of Commerce and Industry of the entity, reiterated that this sector depends almost exclusively on the pocket of the Venezuelan, which if it is not well, “these things happen.”
Likewise, he did not hide his concern in relation to the situation remaining the same, even in December, since many acquired commitments to prepare in terms of inventory and most fear closing the year in the negative.
Expectations
The union members agreed that they maintain hopes of a possible change of panorama already in the month of December, although they recognized that a good percentage of merchants remain cautious.
Raad suggested the possibility that a large part of the establishments could offer credit facilities for the citizen, either through applications or mechanisms that they believe can work for them to try to cope with the decrease in sales.
“The important thing is that people know that they can take the product and pay for it in parts (installments), as already happens in large stores. That would help a lot,” he said.
In consultations with merchants in Barcelona, they admitted the positive aspects of the credit systems that are in fashion.
However, several had similar opinions regarding the risk that having “money on the street” means for them by January 2025.
It should be remembered that January 10 is the swearing-in of the president-elect in the July 28 elections.
In addition, the first month of the year is usually null for commerce, so the uncertainty of those who make a living in this sector will probably double.