The Most and Least Impacted Venezuelan Industries by the COVID-19 Pandemic
The COVID-19 pandemic was an eye-opener for many companies. Many leading brands experienced great turmoil while unexpected businesses gained attention and profits, portraying how nothing is constant or predictable in the business world. This was the case for many industries in Venezuela as well. So which industries were impacted the most by the virus, and which the least?
Negative Effects of the Pandemic
Even before the pandemic, many Venezuelan industries were already at risk. However, three sectors, in particular, were affected the most by recent events:
- Transportation
With mostly everyone staying home, bus drivers were losing jobs quickly, and independent drivers like “carritos” also experienced difficulty finding passengers. People losing their jobs also meant less buying power, making it harder for businesses to invest in supplies. This hurt transportation even more since businesses not buying meant nothing to transport from farms or other cities. The shortage in gasoline has also not helped, making transportation more expensive. Thus, companies have joined forces to invest in transportation companies to help mitigate the damage.
- Tourism
While Venezuela’s beautiful landscapes, gorgeous tourist zones, and geographical location make it a perfect tourist spot, the lockdowns imposed around the world have greatly disrupted traveling. Although some private companies offered virtual tours, most of them have failed due to the poor internet infrastructure in the country.
- Oil
Venezuela was once one of Latin America’s most prosperous countries, but years of poor governance has led the country into political and economic ruin. This has significantly impacted its oil sector as well, and its production is now close to zero. The pandemic has only worsened this situation, and the country has even turned into a decaying petrostate.
Positive Effects of the Pandemic
On the other hand, certain industries have turned the pandemic into an opportunity and have even increased sales. Here are the top two that have benefitted from the crisis:
- Pharmaceutical
As soon as the lockdown began, there was a spike in pharmaceutical purchases. People have become much more conscious of their health and have thus stocked up on medicine. The worldwide demand for COVID-19 tests, treatments, and vaccines have only added to the industry’s increase in profits.
- Internet
The pandemic has also significantly boosted internet usage around the world. With stay-at-home orders prompting remote work and online classes, people are spending most of their time on their devices. Many are also preferring to shop online for groceries, clothes, and other necessities since in-store shopping increases the chances of being exposed to the virus.
Let Export Portal Help You
Export Portal’s Blog Page can keep you updated on all the latest trade news. For more articles like this one, make sure to visit our site!
